Alliance Media Holdings Inc. Reports Financial Results For The Three Months Ended September 30, 2019 And Twelve Months Ended June 30, 2019
NEW YORK, Dec. 26, 2019 /PRNewswire/ -- Alliance Media Holdings Inc. (OTC-Pink: ADTR), a developer, publisher and distributor of interactive video games and gaming products, today announced its financial results for the three months ended September 30, 2019 and for the twelve months ended June 30, 2019.
For the twelve months ended June 30, 2019, the company lost $2.3 million on sales of $6.9 million. During the three months ended September 30, 2019, the company lost $410,000 on sales of $461,000.
The company has prepared its consolidated financial statements using the generally accepted accounting principles applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. The company has reported substantial operating losses for the previous two fiscal years, as well as for the three months ended September 30, 2019. Furthermore, the company currently does not have a bank line of credit or other sources of immediate capital, and its current liabilities exceed current assets. As a result, substantial doubt exists about the company's ability to continue as a going concern.
Safe Harbor
Certain statements contained in this press release contain forward-looking statements including without limitation, statements concerning our operations, economic performance, and financial condition. The words "estimate," "believe," "expect," "should"', "will", "plan", and "anticipate" and other similar expressions generally identify forward-looking statements, which speak only as of their dates.
Investors are cautioned that all forward-looking statements, which are based largely on our current expectations, involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including without limitation, risks associated with technological change, competitive factors and general economic conditions, including the related impact on discretionary consumer spending, our ability to obtain sufficient capital to both sustain current operations and fund future growth, changes in marketing and distribution strategies by manufacturers, timely development and release of video game products we produce, potential cost overruns in our development of video games, ability to protect our intellectual property rights, potential claims that we have infringed the intellectual property rights of others, market acceptance of games we develop and / or publish, ability to realize anticipated benefits of acquisitions, potential undiscovered liabilities of companies that we acquire, changes in our business or growth strategy, the emergence of new or growing competitors, various other competitive and technological factors. There can be no assurance that the results referred to in the forward-looking statements contained in this release will occur. The company has no duty and undertakes no obligation to update any forward-looking information, whether as a result of new information, future developments or otherwise.
ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2019
TWELVE MONTHS ENDED JUNE 30, 2019
(Unaudited and in thousands, except per share amounts)
Three months ended
Twelve months ended
September 30, 2019
June 30, 2019
SALES $6,921
$461
COST OF SALES 5,312
147
GROSS PROFIT 1,609
314
OPERATING COSTS AND EXPENSES 3,875
717
LOSS FROM OPERATIONS (2,266)
(403)
Interest expense 7 61
NET LOSS $(2,327)
$(410)
Net loss per share - basic and diluted $(0.05)
$(0.01)
Weighted average common shares outstanding -
Basic and Diluted 44,184
44,184
ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2019 AND JUNE 30, 2019
(unaudited, in thousands)
September 30, June 30,
2019 2019
ASSETS
CURRENT ASSETS:
Cash and equivalents $98 $209
Accounts receivable-net 139 246
Inventory 144 200
Prepaid expenses and other
current assets 18 30
Total current assets 399 685
PROPERTY AND EQUIPMENT - NET 16 18
OTHER ASSETS 22 61
TOTAL $437 $764
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Asset based revolving loan -
bank
$ - $135
Accounts payable 397 401
Accrued expenses and other
current liabilities 351 317
Unearned revenues 220 38
Total current liabilities 968 891
DEFERRED RENT - 7
---
STOCKHOLDERS' EQUITY
Common Stock, 44,184 shares
issued and outstanding 44 44
Additional paid in capital 4,265 4,252
Accumulated deficit (4,840) (4,430)
Total deficit (531) (134)
TOTAL $437 $764
===
ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 2019
TWELVE MONTHS ENDED JUNE 30, 2019
(unaudited, in thousands)
Three months ended
Twelve months ended
September 30, 2019
June 30, 2019
OPERATING ACTIVITIES:
Net loss $(2,327)
$(410)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 26
3
Stock-based compensation expense 93
13
Other 16
(1)
Accounts receivable 1,116
107
Inventory 2,032
56
Advances to suppliers and videogame developers 122
-
Prepaid expenses and other assets 545
45
Accounts payable (384)
(4)
Accrued expenses and other current liabilities (43)
34
Unearned revenues 38
182
Net cash provided by operating activities 1,234
25
INVESTING ACTIVITIES:
Purchase of property and equipment (12)
(1)
Net cash used in investing activities (12)
(1)
FINANCING ACTIVITIES:
Payment of asset-based revolving loan-bank,
net of proceeds (1,174)
(135)
Net cash used in financing activities (1,174)
(135)
NET (DECREASE) INCREASE IN CASH
AND EQUIVALENTS 48
(111)
CASH AND EQUIVALENTS, BEGINNING
OF PERIOD 161
209
CASH AND EQUIVALENTS, END OF PERIOD $209
$98
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SOURCE Alliance Media Holdings Inc.
