SOURCE: uSell.com, Inc.

uSell.com, Inc.

April 01, 2015 08:47 ET

uSell.com Announces 2014 Results

Processed $16.7 Million in Gross Merchandise Value Over Last 9 Months of 2014; Year-Over-Year Increase of 89% in Orders Completed; Conference Call to be Held Today at 4:30pm EDT

NEW YORK, NY--(Marketwired - Apr 1, 2015) - uSell.com (OTCQB: USEL), the leading US-based reCommerce marketplace that instantly finds cash offers for used smartphones and electronics, announced today annual revenues of $6.7 million for 2014, representing a 24 percent increase over 2013. Gross Merchandise Value of $16.7 million was realized for the nine months ended December 31, 2014.

Nik Raman, Chief Executive Officer, stated, "For three years now, we have been investing in our technology to enable small, professional buyers to purchase used smartphone and tablet inventory through our platform. In terms of developing our technology, refining our analytics, and honing in on the path to building the dominant marketplace platform in the industry, there has been no year as critical as 2014. Three things occurred in 2014 that will shape our future. Firstly, we completed the evolution of our business from a 'lead gen model' to a marketplace model. Secondly, we completed a three-year technological journey that culminated in the launch of our Managed by uSell service model. Lastly, we recognized the shifting landscape in our still rapidly expanding industry and identified where our business can create significant shareholder value. We believe that, from a technology perspective, we are positioned better than anyone else to capture this opportunity. We also feel that, as we continue to evolve our technology, the know-how and intellectual capital that we have accumulated over the last three years puts us at a distinct advantage to competition."

2014 Highlights:

  • Facilitated over 480,000 transactions to-date and currently attract over 1 million visitors to our website each month
  • Completed a material change to our business model in the first quarter of 2014, which positively impacted a number of our marketplace metrics
  • Launched the Managed by uSell service in October via a 3rd party logistics partner
  • Increased prices offered to sellers, leading to higher conversion rates and throughput
  • Increased Orders Completed by 89% year-over-year to 237,800 devices while increasing sales and marketing expenditure by just 23%
  • Completed a public offering of 1,550,000 Units at $3.00 per Unit, consisting of one share of common stock and one-half warrant to purchase one share of common stock, generating net proceeds of $3.7 million

Financial Results:

Year 2014 Compared to Year 2013
For the year ended December 31, 2014, revenues were $6.7 million, a 24 percent increase from $5.4 million in the year ended December 31, 2013. Operating loss for the year ended December 31, 2014 increased by $1.5 million, from a loss of $4.2 million in the year ended 2013 to a loss of $5.7 million. Net loss for the year ended December 31, 2014 increased by $3.0 million, from a loss of $4.3 million in the year ended 2013 to a loss of $7.3 million. The resulting EPS is ($1.15), as compared to ($0.95) a year earlier. Of note, for the year ended December 31, 2014, there was $3.7 million of noncash items which represented depreciation and amortization, stock based compensation, amortization of debt discount into interest expense, and change in fair value of derivative liability. Cash balances improved from $489,000 on December 31, 2013 to $2.4 million on December 31, 2014.

Conference Call Details:
uSell.com will host a conference call on Wednesday, April 1, 2015 at 4:30pm EDT. The Company will discuss its 2014 operating and financial results and its strategy and outlook for 2015. The conference call will be hosted by Nik Raman, Chief Executive Officer, and Jennifer Calabrese, Chief Financial Officer. The live conference call can be accessed by dialing (866) 952-1907 or (785) 424-1826. Participants should ask for the uSell.com Earnings Conference Call.

Date: Wednesday, April 1, 2015
Time: 4:30PM EDT
Dial-in Number: (866) 952-1907
International Dial-in Number: (785) 424-1826

Participants are recommended to dial-in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately two hours after completion through April 15, 2015. To listen to the replay, dial (800) 723-0549 (domestic).

About uSell.com, Inc.
uSell.com is a reCommerce marketplace that helps individuals turn unused items into cash. uSell ensures that customers get the highest payouts with the least amount of hassle by facilitating risk-free transactions with professional buyers. For uSell's buyers, uSell offers a scalable technology, marketing, logistics, and analytics solution that provides a high volume of inventory at a low acquisition cost. Visit www.uSell.com

   
uSell.com, Inc. and Subsidiaries  
Consolidated Balance Sheets  
   
    December 31,  
       
    2014     2013  
             
Assets            
Current Assets:            
Cash and cash equivalents   $ 2,414,757     $ 489,166  
Accounts receivable, net     141,327       184,718  
Other receivables     -       29,257  
Prepaid expenses and other current assets     99,529       95,808  
Total Current Assets     2,655,613       798,949  
                 
Property and equipment, net     6,928       7,289  
Intangible assets, net     852,093       806,964  
Other assets     25,875       34,520  
                 
Total Assets   $ 3,540,509     $ 1,647,722  
                 
Liabilities and Stockholders' Equity (Deficit)             
Current Liabilities:                
Accounts payable   $ 539,566     $ 651,296  
Accrued expenses     168,093       327,913  
Deferred revenue     263,739       87,313  
Derivative liability     -       1,001,385  
Total Current Liabilities     971,398       2,067,907  
                 
Convertible notes payable, net of discount     -       246,128  
Total Liabilities     971,398       2,314,035  
                 
Stockholders' Equity (Deficit):                
Convertible Series A preferred stock; $0.0001 par value; 325,000 shares authorized; 100,000 and 0 shares issued and outstanding, respectively. Liquidation preference $300,000 and $0, respectively     10       -  
Convertible Series B preferred stock; $0.0001 value per share; 4,000,000 shares authorized; 951,250 and 976,250 shares issued and outstanding, respectively. Liquidation preference $951,250 and $976,250, respectively     95       98  
Convertible Series C preferred stock; $0.0001 value per share; 146,667 shares authorized; 146,667 and 0 shares issued and outstanding, respectively.     15       -  
Convertible Series E preferred stock; $0.0001 value per share; 103,232 shares authorized; 103,232 and 0 shares issued and outstanding, respectively     10       -  
Common stock; $0.0001 par value; 650,000,000 shares authorized; 7,572,703 and 4,973,073 shares issued, respectively, and 7,533,817 and 4,907,462 shares outstanding, respectively     753       490  
Additional paid in capital     54,610,843       44,087,232  
Accumulated deficit     (52,042,615 )     (44,754,133 )
Total Stockholders' Equity (Deficit)     2,569,111       (666,313 )
                 
Total Liabilities and Stockholders' Equity (Deficit)   $ 3,540,509     $ 1,647,722  
                 
                 
                 
uSell.com, Inc. and Subsidiaries  
Consolidated Statements of Operations  
   
    Year Ended December 31,  
       
    2014     2013  
Revenue   $ 6,665,429     $ 5,371,381  
                 
Costs and Expenses                
  Cost of revenue     1,921,175       416,233  
  Sales and marketing expenses     5,811,873       4,729,552  
  General and administrative expenses     4,659,710       4,480,070  
    Total operating expenses     12,392,758       9,625,855  
Loss from Operations     (5,727,329 )     (4,254,474 )
                 
Other (Expense) Income:                
  Interest income     2,527       1,808  
  Interest expense     (891,596 )     (334,678 )
  Gain on settlements of accounts payable     9,038       188,709  
  Derivative expense - convertible notes payable     -       (61,495 )
  Change in fair value of derivative liability - embedded conversion feature of Convertible Series A preferred stock     -       47,876  
  Change in fair value of derivative liability - convertible notes payable     (681,122 )     149,398  
Total Other (Expense) Income, Net     (1,561,153 )     (8,382 )
Net Loss   $ (7,288,482 )   $ (4,262,856 )
                 
Basic and Diluted Loss per Common Share:                
Net loss per common share - basic and diluted   $ (1.15 )   $ (0.95 )
                 
Weighted average number of common shares outstanding during the period - basic and diluted     6,331,377       4,508,215  
                 

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