SANTA MONICA, Calif.,
May 13, 2014 /PRNewswire/
-- Rightscorp (OTCQB: RIHT), the leading provider of
monetization services for artists and holders of copyrighted
Intellectual Property (IP), today announced financial results for
the first quarter of 2014 ended March 31,
2014.
Financial Highlights:
- 284% increase in revenues to $188,933 for the first quarter ended March 14, 2014, from $49,256 for the same period in 2013 due to growth
in copyrights, ingestion rates, and increase in settlements from
cases closed;
- 21.6% sequential increase in revenues from $155,381 in the fourth quarter of 2013;
- Cash on hand increased 633% to $264,667 at March 31,
2014 from $36,331 at
December 31, 2013;
- $783,488 of equity capital
received during the three months ended March
31, 2014, which led to a boost in ingestion rates of active
copyrights into the Company's monetization system by 400%; and
- As of March 31, 2014, the Company
is still set to receive a balance of $750,000 under the $2.0
million financing commitment obtained through its going
public transaction.
Operational Highlights:
- Authorized copyright catalog increased to over 1.5 million,
including many award-winning films, best-selling authors and over
13 tracks on the Billboard Hot 100;
- Participation from Internet Service Providers (ISP) increased-
Rightscorp recently announced it has received payments from over 70
ISPs, a 40% increase from year end 2013;
- Company reports a boost in ingestion rates by 400% as a result
of equity investment which directly impacts the Company's growth
potential;
- Reports more than 60,000 cases of copyright infringement closed
as of March 31, 2014; and
- Expands its footprint globally into Canada with the engagement of Canadian Law
Firm and files patents to operate in Europe, China, Israel, Japan, Brazil, and India.
Rightscorp CEO Christopher Sabec commented, "Our first quarter
results represent a solid growth trend for Rightscorp. We continue
to gather momentum on many fronts including the growth of our
copyrights under representation, the ingestion of our authorized
copyright catalog, and expansion in the number of ISPs that help
monetize our business through settlements. We continue to
make material upgrades to our technology and processes, which
accelerate our ingestion rate and increase the base of
participating ISPs."
Mr. Sabec continued, "As we look out over the next year, we
expect to maintain our strong sequential quarterly growth. We now
have more than 1.5 million authorized copyrights in our catalog.
Each day we are ingesting content at an accelerating rate. At
last count, we had run roughly 80,000 copyrights through our
ingestion process; this leaves room for significant growth through
the ingestion of this already approved copyright catalog. Existing
clients, who have tested our service with a limited number of
copyrights, are following-up by authorizing us to monetize much
larger portfolios. We are currently in discussions with
entities that own millions of additional copyrights, spanning
various industries, including film, music, print, video games and
software, in the U.S. and abroad."
First Quarter 2014 Financial Summary
For the first quarter of 2014 ended March
31, 2014, the Company generated total revenues of
$188,933, up 284% from $49,256 in the same period in 2013. Sequentially,
revenues rose 22% from $155,381 in
the fourth quarter of 2013. The growth in revenues were driven by
an increase in the number of copyrights under contract, an increase
in active copyrights uploaded into Rightscorp's automated system
and by the growing number of ISPs participating in the Company's
service creating a multiplier effect.
For the first quarter of 2014, operating expenses totaled
$829,389, compared to $318,954 for prior-year quarter. The increase in
fees was due to increased fees paid to copyright holders in the
period. General and administrative expenses were $692,015 for the quarter ended March 31, 2014 compared to $272,282 for the year-ago quarter, due to
increased wages, professional and investment banking fees, and
travel and other expenses related to securing financing.
Sales and marketing costs increased to $31,308 for the first quarter of 2014, from
$14,635 for the first quarter of
2013, due to an increased presence at industry conferences to meet
potential clients. Depreciation and amortization expenses were
$11,599 during quarter ended
March 31, 2014, an increase of
$4,190 compared to $7,409 in the year-ago quarter.
At March 31, 2014, the Company had
cash and cash equivalents totaling $264,667, up from $36,331 at December 31,
2013.
Conference call information:
Date: Tuesday, May 13,
2014
Time: 4:15 P.M. Eastern Time
(ET)
Dial in Number for U.S. & Canadian Callers: 877-407-9129
Dial in Number for International Callers (Outside of the U.S. &
Canada): 201-493-6753
Participating on the call will be Rightscorp Chief Executive
Officer Christopher Sabec and Chief
Operating Officer Robert Steele, who
will discuss operational and financial highlights for the first
quarter of 2014.
To join the live conference call, please dial into the above
referenced telephone numbers five to ten minutes prior to the
scheduled conference call time. A live webcast and archive of the
call will also be available on Rightscorp's website at:
http://rightscorp.equisolvewebcast.com/q1-2014.
A replay will be available for 14 days starting on May 13, 2014 at approximately 8:00 P.M. (ET). To access the replay, please dial
1-877-660-6853 in the U.S. and 1-201-612-7415 for international
callers. The conference ID# is 418309.
About Rightscorp, Inc.
Rightscorp (OTCQB: RIHT) is a leading provider of monetization
services for artists and holders of copyrighted Intellectual
Property (IP). The Company's patent pending digital loss prevention
technology focuses on the infringement of digital content such as
music, movies, software, and games and ensures that owners and
creators are rightfully paid for their IP. Rightscorp
implements existing laws to solve copyright infringements by
collecting payments from illegal file sharing activities via
notifications sent through Internet Service Providers (ISPs).
The Company's technology identifies copyright infringers, who are
offered a reasonable settlement option when compared to the legal
liability defined in the Digital Millennium Copyrights Act (DMCA).
Based on the fact that 22% of all Internet traffic is used to
distribute copyrighted content without permission or compensation
to the creators, Rightscorp is pursuing an estimated $2.3 billion
opportunity and has monetized major media titles through
relationships with industry leaders. http://www.rightscorp.com/
Safe Harbor Statement
This press release may include forward-looking statements. All
statements other than statements of historical fact included in
this press release, including, without limitation, statements
regarding the Company's anticipated financial position, business
strategy and plans and objectives of management of the Company for
future operations, are forward-looking statements. When used in
this press release, words such as "anticipate," "believe,"
"estimate," "expect," "intend," and similar expressions, as they
relate to the Company or its management, identify forward-looking
statements. Such forward-looking statements are based on the
beliefs of the Company's management as well as assumptions made by
and information currently available to the Company's management.
Actual results could differ materially from those contemplated by
the forward-looking statements as a result of certain factors not
limited to, general economic and business conditions, competitive
factors, changes in business strategy or development plans, the
ability to attract and retain qualified personnel, and changes in
legal and regulatory requirements. Such forward-looking statements
reflect the current views of the Company with respect to future
events and are subject to these and other risks, uncertainties and
assumptions relating to the operations, results of operations,
growth strategy and liquidity of the Company. All subsequent
written and oral forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in
their entirety by this paragraph.
For further investor and media information
contact:
Andrew Haag
Managing Partner
IRTH Communications
rightscorp@irthcommunications.com
1-866-976-4784
[Financial Tables to Follow]
Rightscorp,
Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
March 31,
|
|
March 31,
|
|
2014
|
|
2013
|
Revenue
|
$
188,933
|
|
$
49,256
|
|
|
|
|
Operating
expenses:
|
|
|
|
Copyright holder
fees
|
94,467
|
|
24,628
|
General and
administrative
|
692,015
|
|
272,282
|
Sales and
marketing
|
31,308
|
|
14,635
|
Depreciation and
amortization
|
11,599
|
|
7,409
|
Total operating
expenses
|
829,389
|
|
318,954
|
|
|
|
|
Loss from
operations
|
(640,456)
|
|
(269,698)
|
|
|
|
|
Other income
(expenses):
|
|
|
|
Interest
expense
|
(10,586)
|
|
(52,349)
|
Total non-operating
expenses
|
(10,586)
|
|
(52,349)
|
|
|
|
|
Loss from
operations before income taxes
|
(651,042)
|
|
(322,047)
|
|
|
|
|
Provision for income
taxes
|
-
|
|
-
|
|
|
|
|
Net
loss
|
$
(651,042)
|
|
$
(322,047)
|
|
|
|
|
Net loss per share
– basic and diluted
|
$
(0.01)
|
|
$
(0.01)
|
|
|
|
|
Weighted average
common shares – basic and diluted
|
69,071,926
|
|
28,014,392
|
|
|
|
|
|
|
|
|
|
Rightscorp,
Inc.
|
|
Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
Assets
|
2014
|
|
2013
|
|
Assets
|
|
|
|
|
Cash
|
$
264,667
|
|
$
36,331
|
|
Prepaid
expenses
|
41,947
|
|
19,639
|
|
Other current
asset
|
-
|
|
-
|
|
Total Current
Assets
|
306,614
|
|
55,970
|
|
Other
Assets
|
|
|
|
|
Fixed assets,
net
|
65,425
|
|
56,453
|
|
Intangible assets,
net
|
29,575
|
|
33,800
|
|
Total
Assets
|
$
401,614
|
|
$
146,223
|
|
|
|
|
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
974,545
|
|
$
928,304
|
|
Convertible notes
payable, net of discount of $5,504 and $10,891
|
204,496
|
|
202,609
|
|
Total Current
Liabilities
|
1,179,041
|
|
1,130,913
|
|
Total
Liabilities
|
1,179,041
|
|
1,130,913
|
|
|
|
|
|
|
Stockholders'
Deficit:
|
|
|
|
|
Preferred stock,
$.001 par value; 10,000,000 shares authorized; null shares issued
and outstanding
|
-
|
|
-
|
|
Common stock, $.001
par value; 250,000,000 shares authorized; 69,804,729 and 68,797,102
shares issued and outstanding, respectively
|
69,805
|
|
68,797
|
|
Common stock to be
issued
|
851,000
|
|
380,000
|
|
Additional paid in
capital
|
3,193,482
|
|
2,807,185
|
|
Accumulated
deficit
|
(4,891,714)
|
|
(4,240,672)
|
|
Total stockholders'
deficit
|
(777,427)
|
|
(984,690)
|
|
Total Liabilities
and Stockholders' Deficit
|
$
401,614
|
|
$
146,223
|
|
|
|
|
|
|
|
SOURCE Rightscorp, Inc.