SOURCE: CrowdGather, Inc.

CrowdGather, Inc.

September 17, 2015 14:25 ET

CrowdGather, Inc. Announces First Quarter Fiscal 2016 Earnings

Fueled by Gaming, Revenues Increased 74% and Gross Profit by 84% From Year Ago

CALABASAS, CA--(Marketwired - Sep 17, 2015) -  Specialty social media and gaming network, CrowdGather, Inc. (OTCQB: CRWG), today announced financial results for the first quarter ended July 31, 2015. 

The Company reported revenues of $709,151 for the first quarter of fiscal 2016, an increase of 74% from the $406,590 reported for the first quarter of fiscal 2015. Gross profit for the first quarter of fiscal 2016 was $551,858 an increase of 84% from the $299,121 reported for the same period in fiscal 2015.

Net loss for the first quarter of fiscal 2016 was $943,985 for a loss of $.01 per share, versus a net loss of $3,236,446 for a loss of $.03 per share for the first quarter of fiscal 2015.

"On an operating basis, there is no question that the growth in revenues from our Mega Fame Casino has helped improve our performance significantly since last year," said Sanjay Sabnani, CrowdGather's Chairman and CEO. "Lack of sufficient low cost capital is still something that limits our ability to grow even more rapidly. Through the efforts of dedicated stakeholders and my own contributions, we have invested $1.2 million into cleaning up CrowdGather's balance sheet to free it from convertible debt, but there is still some work to be done. The good news is that the business has shown us that it has the capability of scaling rapidly when capital is procured.

"We remain committed to generating a return for our shareholders as we use our expertise in social media and social gaming to pivot our company squarely into a leadership position in the nascent field of cannabis media and crowdfunding," Sabnani concluded.

   
   
CROWDGATHER, INC.  
CONSOLIDATED CONDENSED BALANCE SHEETS  
   
    JULY 31, 2015 (UNAUDITED)     APRIL 30, 2015  
ASSETS                
Current assets                
  Cash   $ 169,881     $ 73,801  
  Accounts receivable     179,592       214,255  
  Investments     21,480       21,480  
  Inventory     31,674       31,744  
  Prepaid expenses and deposits     46,022       37,389  
                   
    Total current assets     448,649       378,669  
                 
Property and equipment, net of accumulated depreciation of $633,983 and $625,097, respectively     32,258       41,143  
                 
Intangible and other assets, net of accumulated amortization of $999,419 and $812,846, respectively     7,461,635       7,664,328  
Goodwill     1,817,400       1,817,400  
                 
Total assets   $ 9,759,942     $ 9,901,540  
                 
  LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current liabilities                
  Accounts payable   $ 185,009     $ 184,113  
                   
  Line of credit     459,415       449,760  
  Deferred revenue     378,067       278,982  
  Accrued vacation     101,791       96,564  
  Other accrued liabilities     266,878       243,821  
  Convertible notes payable, net of discount     388,891       223,316  
  Derivative liabilities     576,685       819,240  
  Notes payable, net of discount     2,216,056       1,455,859  
  Notes payable to related parties, net of discount     299,336       296,359  
                   
      Total current liabilities     4,872,128       4,048,014  
                 
Stockholders' equity                
Common stock, $0.001 par value, 975,000,000 shares authorized, 117,283,509 and 117,283,509 issued and outstanding, respectively     117,284       117,284  
Convertible Preferred Series B stock, $0.001 par value1,000,000 shares authorized, 0 shares issued and outstanding     -       -  
Additional paid-in capital     36,310,765       35,657,048  
Accumulated deficit     (31,511,715 )     (29,892,286 )
Accumulated other comprehensive loss     (28,520 )     (28,520 )
                 
    Total stockholders' equity     4,887,814       5,853,526  
                 
Total liabilities and stockholders' equity   $ 9,759,942     $ 9,901,540  
                 
See accompanying notes to financial statements.         
                 
                 
                 
CROWDGATHER, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
FOR THE THREE MONTHS ENDED JULY 31, 2015 AND 2014  
UNAUDITED  
   
    2015     2014  
                 
Revenue   $ 709,151     $ 406,590  
                 
Cost of revenue     157,293       107,469  
                 
Gross profit     551,858       299,121  
                 
Operating expenses                
  Payroll and related expenses     354,194       673,042  
  Stock based compensation     61,000       99,000  
  General and administrative     737,463       1,233,704  
  Loss on disposal of assets     -       1,529,262  
  Total operating expenses     1,152,657       3,535,008  
                 
Loss from operations     (600,799 )     (3,235,887 )
                 
Other income (expense), net                
  Stated interest and issuance (expense)     (95,943 )     -  
  Debt discount (expense), net fair value adjustment     (186,028 )     -  
  Gain (Loss) on notes payable     (59,627 )     -  
  Other interest (expense)     (788 )     241  
Total Other income (expense), net     (342,386 )     241  
                 
Net loss before provision for income taxes     (943,185 )     (3,235,646 )
                 
Provision for income taxes     800       800  
                 
Net loss   $ (943,985 )   $ (3,236,446 )
                 
                 
Weighted average shares outstanding- basic and diluted     117,283,509       105,359,158  
                 
                 
Net loss per share - basic and diluted   $ (0.01 )   $ (0.03 )
                 
See accompanying notes to financial statements.  

About CrowdGather, Inc.

CrowdGather, Inc. is an investor, acquirer, operator and owner of digital assets in the consumer and cannabis sectors. In 2016, CrowdGather intends to launch a crowdfunding portal at CrowdGather to assist cannabis and digital startups in procuring financing. The Company's online publishing network is anchored by DIY community builder, Yuku while its cannabis holdings include long standing online communities WeedTracker and RapMusic.

CrowdGather subsidiary, Plaor, a company that specializes in developing highly scalable multi-platform games, is located in Boston's Innovation District. Plaor produces Mega Fame Casino, an innovative and highly rated social casino available on iOS, Android & desktop.

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects,""will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's business; general economic, industry and market sector conditions; the ability to generate increased revenues from the Company's forums and Plaor's social casino; the ability to obtain additional financing; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contact Information

  • For additional information, please contact:
    Investor Contact:

    Sanjay Sabnani
    Phone: 818-435-2472 x 101
    Email: sanjay@crowdgather.com