pdvWireless Reports First Quarter Results
8/11/15
WOODLAND PARK, NJ -- (
Revenue for the quarter ended
Because the Company is currently in the process of deploying its advanced digital dispatch networks, the Company's revenues for the first quarter of FY 2016 principally represent its historical software as-a-service ("SAAS") business. The operating results, however, also include costs and expenses related to implementing the Company's digital dispatch networks, the costs associated with its initiatives to implement its broadband spectrum strategies and the costs incurred to raise funds to support its business initiatives.
The increase in revenues for the quarter is principally a result of spectrum leasing revenue, which began in
General and administrative expenses for the three months ended
Adjusted EBITDA for the quarter was a negative (
He added "In the near term, the success of our DispatchPlus launch in
Strong Cash Position
The Company has a strong cash position, with
The Company's cash position was enhanced during the first quarter by the
Broadband Initiative
In
DispatchPlus Business
DispatchPlus is a next-generation push-to-talk solution utilizing state-of-the-art digital two-way radio technology integrated with pdvWireless' proprietary cloud-based mobile resource management solutions, including workforce tracking, status mapping and the Company's patented intelligent call prioritization. DispatchPlus enables communications to be sent, simultaneously, to one or many recipients, whether the recipient(s) is on pdvWireless' two-way service, a cellphone or at any email address. At the end of the first quarter, the Company announced the commercial launch of its first DispatchPlus two-way radio service in the greater
Conference Call
pdvWireless will host a conference call to discuss its first quarter 2016 financial results on
About pdvWireless
Non-GAAP Financial Information
This press release and the information contained herein present a non-GAAP financial measure, Adjusted EBITDA, which excludes certain amounts. The Company defines Adjusted EBITDA as net income (loss) with adjustments for depreciation and amortization, interest income (expense)-net, income taxes and stock-based compensation. The Company has included below unaudited adjusted financial information for the three months ended
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts are forward-looking statements (as defined under Federal securities laws). Forward-looking statements generally are accompanied by words such as "will", "expect", "intend", "plan", "outlook" or other similar words, phrases or expressions. These forward-looking statements include statements regarding the planned timing and scope of the Company's deployment of its dispatch network, the estimated costs of deploying its dispatch network, and its regulatory initiatives and plans. Any forward-looking statements contained herein are based on our current expectations, but are subject to a number of risks and uncertainties that could cause our actual future results to differ materially from our current expectations or implied by any forward-looking statements. These risks and uncertainties include, but are not limited to: we have no operating history with respect to our proposed push-to-talk business; we have had net losses each year since our inception and may not achieve or maintain profitability in the future; we may experience delays in launching our nationwide network; customers may not adopt our technology; any efforts we pursue to increase the value of our spectrum may not be successful; we will rely on the equipment and selling efforts of other parties, such as indirect dealers; the wireless communication industry is highly competitive and we may not compete successfully; and government regulation could adversely affect our business and prospects. These and other factors that may affect our future results or operations are identified and described in more detail in our filings with the
Pacific DataVision, Inc. | ||||||||||
Statements of Operations | ||||||||||
(Unaudited) | ||||||||||
Three months ended | ||||||||||
June 30, | ||||||||||
2015 | 2014 | |||||||||
Operating revenues | ||||||||||
Service revenue | $ | 648,662 | $ | 831,138 | ||||||
Spectrum lease revenue | 182,186 | - | ||||||||
Other revenue | 10,012 | - | ||||||||
Total operating revenues | 840,860 | 831,138 | ||||||||
Cost of revenue | ||||||||||
Sales and service | 375,174 | 283,930 | ||||||||
Gross profit | 465,686 | 547,208 | ||||||||
Operating expenses | ||||||||||
General and administrative | 3,722,406 | 2,423,191 | ||||||||
Sales and support | 811,675 | 291,604 | ||||||||
Product development | 304,897 | 226,695 | ||||||||
Total operating expenses | 4,838,978 | 2,941,490 | ||||||||
Loss from operations | (4,373,292 | ) | (2,394,282 | ) | ||||||
Interest expense - affiliated entities | - | (193,281 | ) | |||||||
Interest income | 22,220 | - | ||||||||
Net loss | $ | (4,351,072 | ) | $ | (2,587,563 | ) | ||||
Net loss per common share basic and diluted | $ | (0.32 | ) | $ | (0.92 | ) | ||||
Weighted-average common shares used to compute basic and diluted net loss per share | 13,492,560 | 2,827,574 | ||||||||
The table below reconciles Adjusted EBITDA to the Company's GAAP disclosure of net loss: | ||||||||||
Three months ended | ||||||||||
June 30, | ||||||||||
2015 | 2014 | |||||||||
Adjusted EBITDA: | ||||||||||
Net loss | $ | (4,351,072 | ) | $ | (2,587,563 | ) | ||||
Interest expense - affiliated entities | - | 193,281 | ||||||||
Depreciation and amortization | 49,090 | 14,610 | ||||||||
Stock Compensation expense | 1,349,634 | 2,095,776 | ||||||||
Adjusted EBITDA | $ | (2,952,348 | ) | $ | (283,896 | ) | ||||
Pacific DataVision, Inc. | ||||||||||
Balance Sheets | ||||||||||
June 30, | March 31, | |||||||||
2015 | 2015 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current Assets | ||||||||||
Cash and cash equivalents | $ | 175,851,438 | $ | 119,873,668 | ||||||
Accounts receivable, net | 403,634 | 395,172 | ||||||||
Prepaid expenses | 728,570 | 629,790 | ||||||||
Total current assets | 176,983,642 | 120,898,630 | ||||||||
Property and equipment | 7,736,538 | 6,384,602 | ||||||||
Intangible assets | 100,298,444 | 100,298,444 | ||||||||
Capitalized patent costs, net | 220,247 | 220,783 | ||||||||
Other assets | 30,105 | 25,630 | ||||||||
Total assets | $ | 285,268,976 | $ | 227,828,089 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current Liabilities | ||||||||||
Accounts payable and accrued expenses | $ | 2,324,196 | $ | 6,467,285 | ||||||
Accounts payable - officers | 15,728 | 40,668 | ||||||||
Deferred revenue | 737,984 | 737,664 | ||||||||
Total current liabilities | 3,077,908 | 7,245,617 | ||||||||
Deferred Revenue | 6,194,332 | 6,376,518 | ||||||||
Total liabilities | 9,272,240 | 13,622,135 | ||||||||
Commitments and Contingencies | ||||||||||
Stockholders' equity | ||||||||||
Preferred Stock, $0.0001 per share, 10,000,000 shares authorized and no shares outstanding at June 30, 2015 and March 31, 2015 | - | - | ||||||||
Common Stock, $0.0001 par value per share, 100,000,000 shares authorized and 14,266,872 shares issued and outstanding at June 30, 2015 and 12,530,493 shares issued and outstanding at March 31, 2015 | 1,438 | 1,253 | ||||||||
Additional paid-in capital | 322,003,549 | 255,861,880 | ||||||||
Accumulated deficit | (46,008,251 | ) | (41,657,179 | ) | ||||||
Total stockholders' equity | 275,996,736 | 214,205,954 | ||||||||
Total liabilities & stockholders' equity | $ | 285,268,976 | $ | 227,828,089 | ||||||
Pacific DataVision, Inc. | |||||||||||
Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
June 30, | |||||||||||
2015 | 2014 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | (4,351,072 | ) | $ | (2,587,563 | ) | |||||
Adjustments to reconcile net loss to net cash provided (used) by operating activities | |||||||||||
Depreciation and amortization | 49,090 | 14,610 | |||||||||
Non-cash compensation expense attributable to stock awards | 1,349,634 | 2,095,776 | |||||||||
Changes in operating assets and liabilities | |||||||||||
Accounts receivable | (8,462 | ) | 9,059 | ||||||||
Prepaid expenses and other assets | (103,255 | ) | 11,629 | ||||||||
Accounts payable and accrued expenses | (4,143,089 | ) | 1,048,222 | ||||||||
Accounts payable - officers | (24,940 | ) | 87 | ||||||||
Accrued interest expense | - | 193,280 | |||||||||
Deferred compensation | - | 6,085 | |||||||||
Deferred revenue | (181,866 | ) | (10,751 | ) | |||||||
Net cash flows provided (used) by operating activities | (7,413,960 | ) | 780,434 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Restricted cash | - | (182,165,999 | ) | ||||||||
Payment of deposit | - | (13,500,000 | ) | ||||||||
Purchases of intangible assets | - | (253,444 | ) | ||||||||
Purchases of equipment | (1,398,746 | ) | (3,743 | ) | |||||||
Payments for patent costs | (1,744 | ) | (135 | ) | |||||||
Net Cash used by investing activities | (1,400,490 | ) | (195,923,321 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from notes payable | - | 45,000 | |||||||||
Net proceeds from Section 144A Offering | - | 202,003,249 | |||||||||
Net proceeds from follow-on offering | 64,792,220 | - | |||||||||
Net cash provided from financing activities | 64,792,220 | 202,048,249 | |||||||||
Net change in cash and cash equivalents | 55,977,770 | 6,905,362 | |||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Beginning of the period | 119,873,668 | 45,679 | |||||||||
End of the period | $ | 175,851,438 | $ | 6,951,041 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Taxes paid | $ | 800 | $ | 500 | |||||||
Investor relations contacts:
CFO
973-771-0981
Email Contact
Principal
Adam Friedman Associates
917-675-6250
Email Contact
Source: pdvWireless