CAMPBELL, CA--(Marketwired - Apr 4, 2016) - Inventergy Global, Inc. (
Highlights from the full year 2015 include:
- Revenue of $4,888,302 for the twelve months ended December 31, 2015, up 580% compared to the same period in the prior year. The increase was due to the Company's successful sale of two patent families for $4 million, patent licensing and litigation settlement contracts which totaled $603,571 and access control security product/service lines acquired in the merger of $284,731.
- Gross profit of $3,743,311 for the twelve months ended December 31, 2015, compared to negative gross profit of $(12,946) for the same period in the prior year. Gross profit margin was 77% for the full year 2015 as compared to a negative gross margin of -2% for full year 2014.
- General and administrative expenses for the twelve months ended December 31, 2015 were $7,532,240, a 36% decrease compared to $11,728,973 for the same period in the prior year. The decrease was primarily a result of cost containment and prudent oversight of operational expenses such as patent costs and consulting fees, legal fees, business travel, and other general expense savings.
- A 42% decrease in net loss to $11,733,549 for the twelve months ended December 31, 2015 compared to a net loss of $20,084,554 for the same period in the prior year.
- An 81% decrease in net cash used in operating activities to $1,603,693 for the twelve months ended December 31, 2015 compared to net cash used in operating activities of $8,371,167 for the same period in the prior year.
- Cash and cash equivalents of $554,556 as of December 31, 2015. The Company raised gross proceeds of $2,500,000 on January 26, 2016 for the sale of Series C Convertible Preferred Stock and warrants.
- The Company owns approximately 742 currently active patents and patent applications as of December 31, 2015.
- During Q1 of 2015, the Company entered into its first license agreement for a $2 million, 5-year license to its Huawei and Nokia Internet Multimedia Systems (IMS) patent portfolios. The license was granted to a mid-tier IMS telecommunications equipment supplier, at essentially the same effective royalty rate being offered in discussions with other IMS-related supplier companies.
- In Q2 of 2015, Inventergy completed a $4 million transaction for the sale of two patent families from its Panasonic mobility portfolio.
- In Q3 of 2015, Inventergy settled the litigation against Genband, a mid-tier IMS telecommunications equipment supplier, for an undisclosed amount.
- In October 2015, the Company was granted ten newly issued patents in the US, Europe and Asia, which strengthened its presence in the global telecommunications industry.
- In October 2015, the Company converted the Series A-1, A-2 and B Preferred Stock to common eliminating all of the redemption, anti-dilution, right of first refusal and similar rights from the original investments that were part of the formation of the Company.
- In December 2015, the Company completed a 1 for 10 reverse stock split and regained Nasdaq compliance for the minimum $1 stock price requirement.
Inventergy's Chief Executive Officer Joe Beyers commented, "2015 was an intense year for us as we executed on our corporate strategy and started to monetize our IP portfolio and successfully closed three transactions worth over $6 million. More recently we secured $2.5 million through the sale of our Series C Convertible Preferred Stock and warrants which is intended to help propel our corporate trajectory towards what we view as a strong pipeline of potential revenue. We also reached an agreement with one of our patent partners to amend the parties' patent purchase agreement resulting in a reduction in our liabilities of $17.3 million, including the elimination of $1.0 million of accrued interest expense, thereby significantly strengthening our balance sheet. Lastly, we obtained significant flexibility from our debt holder, Fortress, who agreed to defer certain debt amortization payments until July 1, 2016 which were previously scheduled to begin October 1, 2015. We remain committed to focusing our efforts on our robust pipeline of additional value-creation opportunities and to pursuing our efforts to drive significant larger revenue opportunities in 2016."
Conference call information:
Date: Monday, April 4, 2016
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers: (877) 407-8289
Dial in Number for International Callers (Outside of the U.S. & Canada): (201) 689-8341
The conference call will be hosted by Inventergy's Chief Executive Officer Joe Beyers and Chief Financial Officer John Niedermaier, who will provide a financial and operational summary of the fourth quarter and full year 2015. To join the live conference call, please dial into one of the above referenced telephone numbers ten minutes prior to the scheduled conference call time.
If you are unable to participate in the call at this time, a replay will be available for 14 days starting on April 4, 2016 at approximately 10:30 P.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 13633735.
About Inventergy Global, Inc.
Inventergy Global, Inc. (
Cautionary Statement Regarding Forward-Looking Statements
This press release includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. These statements may be identified by the use of words like "anticipate", "believe", "estimate", "expect", "intend", "may", "plan", "will", "should", "seek" and similar expressions and include any projections or estimates set forth herein. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Inventergy and our management team, are inherently uncertain. A more complete description of these risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
| INVENTERGY GLOBAL, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| Twelve Months Ended | ||||||||||
| December 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Revenues | $ | 4,888,302 | $ | 719,267 | ||||||
| Operating Expenses: | ||||||||||
| Cost of revenues | 1,144,991 | 732,213 | ||||||||
| Patent amortization expense | 1,530,110 | 1,400,540 | ||||||||
| General and administrative | 7,532,240 | 11,728,973 | ||||||||
| Total operating expenses | 10,207,341 | 13,861,726 | ||||||||
| Loss from operations | (5,319,039 | ) | (13,142,459 | ) | ||||||
| Other income (expense): | ||||||||||
| Loss on extinguishment of notes payable | (2,268,373 | ) | (5,643,607 | ) | ||||||
| Impairment of acquired contract | - | (686,350 | ) | |||||||
| Decrease in fair value of derivative liabilities | 67,439 | 783,129 | ||||||||
| Other income | 2,137 | 242 | ||||||||
| Interest expense, net | (4,229,754 | ) | (1,393,109 | ) | ||||||
| Total other income (expense), net | (6,428,551 | ) | (6,939,695 | ) | ||||||
| Loss before provision for income taxes | (11,747,590 | ) | (20,082,154 | ) | ||||||
| Provision for income taxes | (14,041 | ) | 2,400 | |||||||
| Net loss | (11,733,549 | ) | (20,084,554 | ) | ||||||
| Deemed dividend on preferred stock | - | 436,916 | ||||||||
| Net loss available to common shareholders | $ | (11,733,549 | ) | $ | (20,521,470 | ) | ||||
| Basic and diluted loss per share | $ | (3.41 | ) | $ | (11.52 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 3,443,369 | 1,781,308 | ||||||||
| INVENTERGY GLOBAL, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||
| December 31, | December 31, | |||||||||||
| 2015 | 2014 | |||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 554,556 | $ | 1,443,349 | ||||||||
| Accounts receivable, net | 31,941 | 259,049 | ||||||||||
| Inventories | - | 302,739 | ||||||||||
| Prepaid expenses and other current assets | 211,088 | 212,280 | ||||||||||
| Deferred expenses, current | 78,292 | 3,000,000 | ||||||||||
| Total current assets | 875,877 | 5,217,417 | ||||||||||
| Property and equipment, net | 25,263 | 42,267 | ||||||||||
| Deferred expenses, patents | - | 12,094,420 | ||||||||||
| Patents, net | 8,669,921 | 10,415,404 | ||||||||||
| Intangible assets, net | 386,083 | 499,083 | ||||||||||
| Goodwill | 8,858,504 | 8,858,504 | ||||||||||
| Debt issuance costs | 516,767 | 729,498 | ||||||||||
| Deposits and other assets | 18,993 | 18,993 | ||||||||||
| Total assets | $ | 19,351,408 | $ | 37,875,586 | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | $ | 1,846,903 | $ | 1,501,938 | ||||||||
| Accrued expenses and other current liabilities | 12,726 | 301,132 | ||||||||||
| Short-term notes payable, related party | 100,000 | 300,000 | ||||||||||
| Guaranteed payments, current | 2,076,767 | 3,807,084 | ||||||||||
| Fortress notes payable, current | 5,894,049 | 1,421,196 | ||||||||||
| Deferred revenue | 550,000 | - | ||||||||||
| Total current liabilities | 10,480,445 | 7,331,350 | ||||||||||
| Deferred revenue, non-current | 346,429 | - | ||||||||||
| Guaranteed payments | - | 13,105,857 | ||||||||||
| Derivative liabilities | 4,145 | 30,278 | ||||||||||
| Fortress notes payable, net of discount | 2,628,153 | 6,259,321 | ||||||||||
| Fortress revenue share, net of discount | 6,034,278 | 2,478,057 | ||||||||||
| Total liabilities | 19,493,450 | 29,204,863 | ||||||||||
| Stockholders' equity | ||||||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized | ||||||||||||
| Series A convertible preferred stock: 6,176,748 shares designated, -0- and 2,709,690 shares issued and outstanding at December 31, 2015 and December 31, 2014 (aggregate liquidation preference of $0 at December 31, 2015 and $2,915,122 at December 31, 2014) | - |
2,710 |
||||||||||
| Series B convertible preferred stock: 2,750 shares designated, -0- and 1,102 shares issued and outstanding at December 31, 2015 and December 31, 2014 (aggregate liquidation preference of $0 and $1,102,000 at December 31, 2015 and December 31, 2014 | - |
1 |
||||||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized, 4,223,124 and 2,799,713 shares issued and outstanding at December 31, 2015 and December 31, 2014 | 4,223 |
2,800 |
||||||||||
| Additional paid-in capital | 54,660,497 | 51,738,425 | ||||||||||
| Accumulated deficit | (54,806,762 | ) | (43,073,213 | ) | ||||||||
| Total stockholders' equity (deficit) | (142,042 | ) | 8,670,723 | |||||||||
| Total liabilities and stockholders' equity (deficit) | $ | 19,351,408 | $ | 37,875,586 | ||||||||
| INVENTERGY GLOBAL, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | |||||||||||
| Cash flows from operating activities | ||||||||||||
| Net loss | $ | (11,733,549 | ) | $ | (20,084,554 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||||||
| Depreciation expense | 17,004 | 9,919 | ||||||||||
| Loss on extinguishment of notes payable | 2,268,373 | 5,643,607 | ||||||||||
| Decrease in fair value of derivative liabilities | (67,439 | ) | (783,129 | ) | ||||||||
| Amortization of discount on notes payable | 3,242,080 | 883,125 | ||||||||||
| Accrued interest on patent purchase | 258,246 | - | ||||||||||
| Impairment of acquired contracts | - | 686,350 | ||||||||||
| Amortization of patents and acquired contracts | 1,643,110 | 1,557,108 | ||||||||||
| Net cost of patents sold | 215,373 | - | ||||||||||
| Stock-based compensation | 1,147,374 | 2,873,396 | ||||||||||
| Issuance of new stock in conjunction with the restricted stock granted | - | 225,001 | ||||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable | 227,108 | (259,049 | ) | |||||||||
| Inventories | 302,739 | 12,207 | ||||||||||
| Prepaid expenses and other current assets | 1,192 | (113,282 | ) | |||||||||
| Deferred expenses | (78,292 | ) | - | |||||||||
| Deposits and other assets | - | 1,406 | ||||||||||
| Accounts payable | 344,965 | 906,835 | ||||||||||
| Accrued expenses and other current liabilities | (288,406 | ) | 114,971 | |||||||||
| Accrued interest on notes payable | - | (6,935 | ) | |||||||||
| Deferred revenue | 896,429 | - | ||||||||||
| Warranty reserve | - | (38,143 | ) | |||||||||
| Net cash used in operating activities | (1,603,693 | ) | (8,371,167 | ) | ||||||||
| Cash flows from investing activities | ||||||||||||
| Purchases of property and equipment | - | (52,186 | ) | |||||||||
| Issuance of short-term note receivable, related party | - | (3,000,000 | ) | |||||||||
| Cash and other assets received in acquisition | - | 790,172 | ||||||||||
| Net cash used in investing activities | - | (2,262,014 | ) | |||||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from issuance of common stock, net of issuance costs | 1,835,000 | 6,021,144 | ||||||||||
| Proceeds from issuance of convertible notes payable, net of issuance costs | - | 3,371,834 | ||||||||||
| Proceeds from issuance of notes payable | 1,126,900 | 9,964,868 | ||||||||||
| Proceeds from related party note payable | - | 300,000 | ||||||||||
| Payments on short-term notes payable, related party | (100,000 | ) | (100,000 | ) | ||||||||
| Payments on convertible notes | - | (8,000,000 | ) | |||||||||
| Payments on Fortress notes payable | (2,147,000 | ) | - | |||||||||
| Payments on guaranteed payment liability | - | (1,000,000 | ) | |||||||||
| Net cash provided by financing activities | 714,900 | 10,557,846 | ||||||||||
| Net decrease in cash and cash equivalents | (888,793 | ) | (75,335 | ) | ||||||||
| Cash and cash equivalents, beginning of period | 1,443,349 | 1,518,684 | ||||||||||
| Cash and cash equivalents, end of period | $ | 554,556 | $ | 1,443,349 | ||||||||
| Supplemental disclosures of cash flow information | ||||||||||||
| Cash paid for interest | $ | 841,784 | $ | 516,919 | ||||||||
| Cash paid for income taxes | $ | - | $ | - | ||||||||
| Supplemental disclosures of non-cash investing and financing activities | ||||||||||||
| Accrued guaranteed payments and deferred expenses associated with purchased patent assets | $ | (16,258,540 | ) | $ | 1,749,230 | |||||||
| Conversion of portion of short-term note payable, related party, to purchase common stock | $ | 100,000 | $ | - | ||||||||
| Conversion of preferred stock to common stock | $ | 2,711 | $ | - | ||||||||
| Offset of short-term related party notes payable and receivable | $ | - | $ | 3,000,000 | ||||||||
| Transfer of Series A redeemable convertible preferred stock to preferred stock | $ | - | $ | 3,392,950 | ||||||||