Exhibit 99.01

 

SRAX REPORTS Positive Net Income for Q4 2020 and Increases Guidance

 

LOS ANGELES—(BUSINESS WIRE)—SRAX, Inc. (NASDAQ: SRAX), a

 

Fourth Quarter 2020 and Recent Operational Highlights and Guidance

 

  Revenue for Q4 of $4.5M up 316% year-over-year, 74% sequentially quarter-over-quarter, exceeding previous guidance.
  Full-year revenue guidance increased from $17M - $18M to $23M - $25M
  Sequire bookings of $4.8M and $10M for Q4 and 1Q, respectively
  8 consecutive quarters of Sequire SAAS growth
  Currently holding approximately $23.8M worth of publicly listed securities
  183 public companies/partners have subscribed to Sequire, up 92 since our Q3 release
  Sold position in TI Health (SRAXmd) for $8M
  Sequire revenue to be recognized from existing contracts in 2021: $16.5M as of this release.
  Second Quarter revenue guidance of $7M
  BIGtoken share exchange completed. BIGtoken now listed under TICKER:FPVD

 

Three months ended December 31, 2020

 

  Total Revenue was $4.5M, an increase of 316% as compared to the same period in prior year.
  Gross Margin was 73%, as compared to 44% in the same period last year.
  Operating Expenses were $5.3M as compared to $4.8m in the same period last year.
  EBITDA increase of $3M, ($672K) vs ($3.7M) in Q4 2019
  SRAX less BIGtoken Pro forma EBITDA of $255K as compared to ($500K)
  Net Income of $200K compared to Net loss of $4.4M in the same period last year.

 

Full Year Ended December 31, 2020

 

  Total Revenue was $8.7M, an increase of 141% as compared to the same period in prior year.
  Gross Margin was 70%, as compared to 53% in the same period last year.
  Operating Expenses were $14.4M, a decrease of $3M, or 17% as compared to the same period last year.
  EBITDA was -$8.4M as compared to -$15.5M last year.
  Net Income was -$14.7M compared to -$16.9M in the same period last year.

 

“As the SEQUIRE platform continues to grow and adapt to customer needs, we are seeing a tremendous increase in our recurring revenue stream. SEQUIRE is changing the way public issuers interact with and engage their investors, and it shows. We are pleased to report our first quarter of positive EBITDA from our SEQUIRE segment,” said Chris Miglino, Founder and CEO of SRAX.

 

“The whole company is very proud of everything we’ve accomplished this quarter and is excited about the momentum we have going into quarter four. We acquired LD Micro, moved BIGToken to its own public company, and successfully sold our remaining MD asset, which was not on our balance sheet.

 

   
 

 

The number of new companies signing up on Sequire has increased substantially. We now have a clear view of the Sequire business without the BIGtoken business. We had record bookings in the first quarter of 10M in 2021 which puts us in a position where we have $16.5M in revenue that will run in the entirety of 2021.

 

Now have clear confirmation that Sequire is rapid growing and profitable business. Sequire is a profitable business. We were profitable (EBITDA and net income) in Q4 standalone, without BIGtoken. In Q1, we anticipate that we’ll be even more profitable. Giving guidance of 7M in Q2. Sold 10M of bookings in Q1.

 

We’ve launched a number of amazing products in Q1, for the Sequire platform. Talk about Shelf. Used our virtual platform to launch conferences for a number of large financial institutions. Many new features due to rollout in Q2 and Q3.

 

With the growth that we’re experiencing, we’re comfortable with giving guidance of $23-25M in revenue for the year. And look forward to continued growth of the Sequire platform

 

Conference Call:

 

Management will review the results on a conference call with a live question and answer session, March 29th, 2020, at 12:00 p.m. ET / 9:00 p.m. PT.

 

To access the live webcast and presentation, please register here: https://zoom.us/webinar/register/WN_Hj1BLJk9Rma0d-g4ZfBbVg

 

The webcast will be available on srax.com for at least 90 days. To dial-in to the conference call, please call US: +1 669 900 6833. Webinar ID: 942 4818 0377.

 

Non-GAAP Measures:

 

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Reconciliation of GAAP to Non-GAAP Results” table in this press release.

 

   
 

 

SRAX less BIGtoken EBITDA is defined as earnings before interest, taxes, depreciation and amortization, changes in the fair-value of derivative and warrant liabilities and certain additional one-time charges and excluding the results from the BIGtoken carved-out entity.

 

About SRAX:

 

SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors’ behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit srax.com.

 

Safe Harbor Statement:

 

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as “anticipate,” “plan,” “will,” “intend,” “believe” or “expect’” or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to increase our revenues, satisfy our obligations as they become due, report profitable operations and other risks and uncertainties as set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, and our subsequent Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of SRAX and are difficult to predict. SRAX undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

   
 

 

SRAX SEGMENT OPERATING RESULTS:

 

   For the Three Months Ended December 31, ( Unaudited) 
   Sequire   BIGToken   Corporate and Other   Consolidated 
   2020   2019   2020 vs. 2019 Change   2020   2019   2020 vs. 2019 Change   2020   2019   2020 vs. 2019 Change   2020   2019   2020 vs. 2019 Change 
           $   %           $   %           $   %           $   % 
Sequire platform revenue   2,970,000    46,000    2,924,000    n/m    -    -    -    n/a    -    -    -    n/a    2,970,000   $46,000    (46,000)   -100%
Conference revenue   506,000    -    506,000    n/a    -    -    -    n/a    -    -    -    n/a    506,000    -    -    n/a 
BIGtoken revenue   -    -    -    n/a    996,000    987,000    9,000    1%   -    -    -    n/a    996,000    987,000    (987,000)   -100%
Other   -    -    -    n/a    -    -    -    n/a    52,000    55,000    (55,000)   -100%   52,000    55,000    (55,000)   -100%
Total Revenue   3,476,000    46,000    3,430,000    n/m    996,000    987,000    9,000    1%   52,000    55,000    (55,000)   -100%   4,524,000    1,088,000    (1,088,000)   -100%
                                                                                 
Cost of Revenue   888,000    7,000    881,000    n/m    309,000    600,000    (291,000)   -49%   5,000    -2,000    2,000    -100%   1,202,000    605,000    (605,000)   -100%
Gross profit   2,588,000    39,000    2,549,000    n/m    687,000    387,000    300,000    78%   47,000    57,000    (57,000)   -100%   3,322,000    483,000    (483,000)   -100%
margin %   74.5%   84.8%   74%        69.0%%   39.2%%   3333%        90.4%%   103.6%%   104%        73.4%%   44.4%   44%     
                                                                                 
Operating expenses   1,501,000    174,000    1,327,000    763%   1,444,000    2,471,000    (1,027,000)   -42%   2,394,000    2,114,000    (2,114,000)   -100%   5,339,000    4,759,000    (4,759,000)   -100%
                                                                                 
Operating Income  $1,087,000    -135,000    1,222,000    -905%   -757,000    -2,084,000    1,327,000    -64%   -2,347,000    -2,057,000    2,057,000    -100%   -2,017,000    -4,276,000    4,276,000    -100%

 

   Year ended December 31, ( Unaudited) 
   Sequire   BIGToken   Corporate and Other   Consolidated 
   2020   2019   2020 vs. 2019 Change   2020   2019   2020 vs. 2019 Change   2020   2019   2020 vs. 2019 Change   2020   2019   2020 vs. 2019 Change 
           $   %           $   %           $   %           $   % 
Sequire platform revenue   5,781,000    87,000    5,694,000    n/m    -    -    -    n/a    -    -    -    n/a    5,781,000   $87,000    (87,000)   -100%
Conference revenue   503,000    -    503,000    n/a    -    -    -    n/a    -    -    -    n/a    503,000    -    -    n/a 
BIGtoken revenue   -    -    -    n/a    2,168,000    3,227,000    (1,059,000)   -33%   -    -    -    n/a    2,168,000    3,227,000    (3,227,000)   -100%
Other   -    -    -    n/a    -    -    -    n/a    195,000    269,000    (74,000)   -28%   195,000    269,000    (269,000)   -100%
Total Revenue   6,284,000    87,000    6,197,000    n/m    2,168,000    3,227,000    (1,059,000)   -33%   195,000    269,000    (269,000)   -100%   8,647,000    3,583,000    (3,583,000)   -100%
                                                                                 
Cost of Revenue   1,783,000    7,000    1,776,000    n/m    800,000    1,613,000    (813,000)   -50%   6,000    60,000    (54,000)   -90%   2,589,000    1,680,000    (1,680,000)   -100%
Gross profit   4,501,000    80,000    4,421,000    n/m    1,368,000    1,614,000    (246,000)   -15%   189,000    209,000    (209,000)   -100%   6,058,000    1,903,000    (1,903,000)   -100%
margin %   72%   92%   71%        63%%   50%%   23%        97%%   78%%   78%        70%%   53%   53%     
                                                                                 
Operating expenses   3,412,000    462,000    2,950,000    639%   5,933,000    10,751,000    (4,818,000)   -45%   8,310,000    8,548,000    (238,000)   -3%   17,655,000    19,761,000    (19,761,000)   -100%
                                                                                 
Operating Income  $1,089,000    (382,000)   1,471,000    -385%   (4,565,000)   (9,137,000)   4,572,000    -50%   (8,121,000)   (8,339,000)   218,000    -3%   (11,597,000)   (17,858,000)   17,858,000    -100%

 

   
 

 

SRAX STATEMENT OF OPERATIONS

 

   For the Years Ended December 31,   For the Three Months Ended December 31, 

(Unaudited)

in $

  2020   2019   $ CHG   % CHG   2020   2019   $ CHG   % CHG 
REVENUE                                        
Total Revenue  $8,647,000   $3,584,000   $5,063,000    141%   4,522,000    1,087,000    3,435,000    316%
Cost of revenue   2,589,000    1,680,000    909,000    54%   1,201,000    605,000    596,000    99%
GROSS PROFIT   6,058,000    1,904,000    4,154,000    218%   3,321,000    482,000    2,839,000    589%
Gross profit margin   70%   53%             73%   44%          
OPERATING EXPENSES                                        
Employee related costs   7,895,000    8,656,000    (761,000)   -9%   2,489,000    1,926,000    563,000    29%
Marketing and selling expenses   2,675,000    2,454,000    221,000    9%   1,044,000    252,000    792,000    314%
Platform Costs   1,667,000    1,738,000    (71,000)   -4%   486,000    579,000    (93,000)   -16%
Depreciation and amortization   1,303,000    1,164,000    139,000    12%   341,000    330,000    11,000    3%
General and administrative   4,115,000    5,750,000    (1,635,000)   -28%   958,000    1,681,000    (723,000)   -43%
Total operating expenses   17,655,000    19,762,000    (2,107,000)   -11%   5,318,000    4,768,000    550,000    12%
LOSS FROM OPERATIONS   (11,597,000)   (17,858,000)   6,261,000    -35%   (1,997,000)   (4,286,000)   2,289,000    -53%
Other income (expense)                                        
Financing Costs   (12,150,000)   (725,000)   (11,425,000)   1576%   (6,810,000)   (366,000)   (6,444,000)   1761%
Interest income        9,000    (9,000)   -100%   -    9,000         0%
Gain (loss) on sale of assets   7,873,000    658,000    7,215,000    1097%   7,873,000    263,000    7,519,000    2859%
Other gain (loss)        -    -    n/a    (8,000)   (14,000)   6,000    -43%
Exchange gain or loss        12,000    (12,000)   -100%   -    354,000         0%
Gains from marketable securities   874,000    -    874,000    n/a    1,158,000    -         n/a 
Change in fair value of derivative liabilities   321,000    1,045,000    (724,000)   -69%   -    (345,000)   345,000    -100%
Total other income (loss)   (3,082,000)   999,000    (4,081,000)   -409%   2,213,000    (99,000)   2,312,000    -2335%
Loss before provision for income taxes   (14,679,000)   (16,859,000)   2,180,000    -13%   216,000    (4,385,000)   4,601,000    -105%
Provision for income taxes   (26,000)        (26,000)   n/a    (26,000)   -    (26,000)   n/a 
Net income (loss)  $(14,705,000)  $(16,859,000)   2,154,000    -13%   190,000   $(4,385,000)   4,575,000    -104%

 

   
 

 

SRAX BALANCE SHEET

 

Balance Sheets

(Unaudited)

 

In dollars  31-Dec-20   31-Dec-19 
ASSETS          
Current Assets          
Cash   451,000    32,000 
Accounts receivable, net   2,608,000    805,000 
Prepaid expense   367,000    - 
Securities held for sale   8,447,000    715,000 
Other current assets   -    306,000 
Total current assets   11,873,000    1,858,000 
Notes receivable   893,000    - 
Property and equipment, net   118,000    191,000 
Goodwill   23,351,000    15,645,000 
Intangible assets, net   2,409,000    1,966,000 
Right-of-Use Asset   366,000    456,000 
Other assets   3,000    118,000 
Total Assets   39,013,000    20,234,000 
           
LIABILITIES AND EQUITY          
Current Liabilities          
Accounts payable and accrued expenses   3,561,000    2,442,000 
Derivative liabilities   -    4,397,000 
Other current liabilities   8,711,000    537,000 
Payroll protection loan - current portion   747,000    - 
OID convertible debentures - current portion   6,016,000    - 
Total Current Liabilities   19,035,000    7,376,000 
Right-of-Use liability - long term   243,000    352,000 
Payroll protection loan, less current portion   379,000    - 
OID convertible debentures, less current portion        - 
Deffered Tax Liability   131,000      
           
Total Liabilities   19,788,000    7,728,000 
           
Stockholders’ equity   19,225,000    12,506,000 
           
Total liabilities and equity   39,013,000    20,234,000 

 

   
 

 

SRAX STATEMENT OF CASH FLOWS

 

STATEMENT OF CASH FLOWS

 

For the Years Ended December 31,        
in dollars  2020   2019 
         
Cash Flows From Operating Activities        
Net Cash Used in Operating Activities   (13,489,000)   (15,350,000)
           
Cash Flows From Investing Activities          
Proceeds from the sale of securities held for sale   916,000      
Proceeds from sale of SRAXmd, net   7,000,000    570,000 
Acquisition of LD Micro, net of cash received   (697,000)   (73,000)
Development of software   (1,205,000)   (1,292,000)
Other assets   32,000      
Net Cash Provided (Used) by Investing Activitities   6,046,000    (795,000)
           
Cash Flows From Financing Activities          
Proceeds from OID notes payable, less issuance costs   11,988,000      
Redemption of OID notes payable   (6,070,000)     
Proceeds from issuance of short term notes payable less issaunce costs   960,000      
Repayment of short term notes payable   (100,000)     
Proceeds from payroll protection program   1,084,000      
Proceeds from the issuace of notes payable   2,130,000      
Repayment of notes payable   (2,130,000)     
Proceeds from the sale of common stock units        12,197,000 
Proceeds from the exercise of warrants        1,196,000 
Net Cash Provided by Financing Activities   7,862,000    13,393,000 
Net increase (decrease) in Cash   419,000    (2,752,000)
Cash, Beginning of Period   32,000    2,784,000 
Cash, End of Period  $451,000   $32,000 

 

   
 

 

SRAX LESS BIGTOKEN – STATEMENT OF OPERATIONS

 

   Three months ended December 31, 2020 
(Unaudited)  CONSOLIDATED SRAX   BIGTOKEN CARVE-OUT   SRAX - LESS BIGTOKEN CARVE - OUT 
($’s)   2020    2019    2020    2019    2020    2019 
                               
TOTAL REVENUE   4,524,000    1,088,000    994,000    986,000    3,530,000    102,000 
Cost of Revenue   1,202,000    605,000    309,000    600,000    893,000    5,000 
Gross Profit   3,322,000    483,000    685,000    386,000    2,637,000    97,000 
Margin %   73%   44%   69%   39%   75%   95%
                               
Cash OPEX   4,062,000    4,132,000    1,680,000    3,536,000    2,382,000    596,000 
                               
EBITDA   (740,000)   (3,649,000)   (995,000)   (3,150,000)   255,000    (499,000)
                               
Non cash OPEX   1,277,000    627,000    759,000    561,000    518,000    66,000 
                               
Operating Income   (2,017,000)   (4,276,000)   685,000    386,000    (2,702,000)   (4,662,000)

 

   

 

 

 

View differences made from one to another to evaluate Social Reality, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Social Reality, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account