SOURCE: Symbid Corp.

Symbid Corp.

May 15, 2015 15:30 ET

Symbid Corp. Announces First Quarter 2015 Results

Financial Technology Brand Reports First Revenues Following Launch of The Funding Network™

ROTTERDAM, THE NETHERLANDS and NEW YORK, NY--(Marketwired - May 15, 2015) -  Symbid Corp. (OTCQB: SBID) www.symbidcorp.com

  • Total revenue of $73,866 for first quarter 2015 includes first registrations to The Funding Network™ after March launch.
  • Revenue down 14% on same period last year due mainly to worsening exchange rate.
  • Investment in joint venture and subsequent incorporation of Symbid Italia S.p.A. represents first international expansion of Symbid funding platform.
  • Operating expenses equal to same period last year except for share-based compensation expenses, accounting for 27% of total first quarter operating expenses of $655,203.
  • Positive cash flow from financing and investing activities following closing of Private Placement Offering and sale of Gambitious shares.

"We are pleased to report the first revenues following the successful launch of Symbid, The Funding Network™ in March. This represents a major step forward in our commitment to creating long-term value for shareholders through an innovative service offering for start-ups and small businesses. Following several quarters of heavy investment into research and development, we are now in a position to begin reaping the financial benefits of our newly launched advanced investing, monitoring and data tools in the form of monthly recurring revenues," said Korstiaan Zandvliet, co-founder and CEO of Symbid Corp. "A declining exchange rate notwithstanding, revenues from our crowdfunding platform have remained at a similar level to the same period last year due to the major pivot in our business strategy this quarter. The incorporation of Symbid Italia -- the first international expansion of the Symbid investment crowdfunding platform -- plus a loan crowdfunding product expected in second quarter, means we are confident of increasing our core crowdfunding revenues in the coming months. Add to this the continuing commercialisation of the diversified product portfolio of The Funding Network™, including our monitoring product and upcoming deal-making too, and 2015 is a crucial year in our business development. As we look ahead, these results represent a solid foundation on which we expect to build towards our strategic vision of becoming the leading European online funding platform in 2016."

Summary of First Quarter 2015 Financial Performance:

  • Total revenue decreased by 14% compared to prior year period to $73,866.
  • 74% of revenue attributable to transaction-based model of core investment crowdfunding business, compared to 97% in same period 2014, due to first revenues from The Funding Network.
  • Selling, general and administrative expenses increased by 49% from same period 2014 to $409,353 due to increase in share-based payments made to staff members, accounting for approximately $120,000.
  • Research and development costs decreased by 52% compared to same period 2014 to $22,242 due to fewer external suppliers providing related services and personnel costs for internal developers being listed under selling, general and administrative expenses.
  • Total operating expenses increased by 25% from same period 2014 to $655,203, roughly equal except for share-based payments which have been added as a cost factor.
  • Gambitious Coöperatie shareholding was sold entirely in February 2015.
  • Net losses increased by 37% from same period 2014 to $579,821 in line with the Company's commitment to the research and development of innovative products creating long-term value for its shareholders.

2015 Commercial Outlook:

  • In December 2014 the Company signed a strategic alliance agreement with leading financial advisory firm Credion which, following its launch in March, has resulted in a monthly transaction volume of approximately $55m for The Funding Network™. The Company expects this to result in new monthly recurring revenue streams attributable to its cloud-based monitoring product and soon-to-be released loan crowdfunding and deal-making products beginning second quarter 2015.
  • The Company underwent a successful re-launch of its website in March 2015 in line with its repositioning to a more holistic funding platform, known as The Funding Network™, connecting traditional and alternative financing options in one go-to platform.
  • The Company expects to continue its ongoing release of new products and services with the launch of a loan product in the second quarter of 2015, resulting in additional transaction-based crowdfunding revenues.
  • The formal incorporation of Symbid Italia S.p.A. in February 2015 represents the first stage of a European roll-out which the Company expects to continue throughout 2015. The Company intends to commercialize this international expansion in the third quarter of 2015.
  • Management completed a closing of a Private Placement Offering raising $624,116 to support the growth of The Funding Network™.
  • The Company is actively pursuing a capital raise strategy in order to accelerate the horizontal and vertical expansion of its funding network and balance cash flow. First quarter 2015 saw the Company continue its focus on the internal development of technology thereby creating long-term value through successful innovation. The Company intends to bring this financial technology portfolio to market in 2015 following the launch of The Funding Network™ in March.
       
    Three months ended March 31,  
    2015     2014  
Revenues                
  Crowdfunding   $ 54,394     $ 78,055  
  Other     19,472       8,050  
    Total revenues'     73,866       86,105  
Operating expenses                
  Selling, general and administrative     409,454       274,015  
  Professional fees     186,670       204,713  
  Research and development costs     22,242       45,975  
  Depreciation and amortization     36,938       334  
    Total operating expenses     665,203       525,037  
    Operating loss     (581,337 )     (438,932 )
Other income (expense)                
  Fair value adjustment derivative liability - warrants     (7,274 )     15,264  
  Interest expense     (2,714 )     (5,810 )
  Government subsidy     -       8,221  
  Gain on sale of investment in Gambitious B.V.     11,504       -  
  Other income and expense     -       (1,631 )
    Total other income (expense)     1,516       16,044  
    Net loss     (579,821 )     (422,888 )
                 
Net loss attributable to non-controlling interests     (12,848 )     (11,018 )
                 
    Net loss attributable to Symbid Corp. stockholders   $ (566,973 )   $ (411,870 )
                 
Basic and diluted net loss per common stock   $ (0.02 )   $ (0.02 )
                 
Weighted average number of shares outstanding                
  Basic and diluted     34,079,498       26,498,864  
                 

Disclaimer

This press release is for information purposes only and is not intended to constitute, and should not be construed as, an offer to sell or a solicitation of any offer to buy securities of Symbid Corp. (the "Company") in the United States, Australia, Canada or Japan or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction.

About Symbid Corp.

Founded in 2011 as one of the first investment crowdfunding platforms worldwide, Symbid is The Funding Network™, where companies get funded and grow. As a leading online funding portal for small- and medium-sized enterprises, Symbid gives entrepreneurs direct access to traditional and alternative forms of finance, while offering investors full transparency on the potential risks and returns of their portfolio. Advanced investing, monitoring and data tools ensure companies connecting to The Funding Network™ are financed in the most efficient way possible. Built around cutting-edge technology and expert financial advice, The Funding Network™ by Symbid (www.symbid.com) is a go-to platform for entrepreneurs in search of funding and investors in search of exciting opportunities. As of April 2015, The Funding Network™ has a monthly transaction volume of approximately $55 million. With over 50 funding partners already connected -- including banks, venture capital, angel investors and 30,000 private (crowdfunding) investors -- the total transaction volume of The Funding Network™ in 2015 is estimated at $800 million. Symbid Corp. is a U.S. publicly listed company (OTCQB: SBID). For investor relations, please visit www.symbidcorp.com.

Safe Harbor Statement

This release may include predictions, estimates or other information that might be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgement on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. The predictions discussed in this release are based on the personal opinions of certain individuals and are supported by a consensus within the crowdfunding industry and alternative finance world generally. For a more complete discussion of these predictions and certain risk factors which may affect our future business operations, please review our most recent Form 10-K, particularly under the heading "Risk Factors." PDF copies of these forms can be viewed and downloaded on the Symbid Corp. Investor Relations website at www.symbidcorp.com.

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