Press release

BIGtoken Reports 2021 First Quarter Results

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Sponsored by Businesswire

Force Protection Video Equipment Corp. (OTC: FPVD), also known as BIGtoken, the first privacy focused, opt-in data marketplace where people can own and monetize their data, today reported its financial results for the quarter ended March 31, 2021.

“Right now, we’re focused on creating the best data in the world, creating targeted reach for our brand clients, developing our blockchain and wallet, and building upon our ethically-sourced identity solutions,” said George Stella, co-founder and President of BIGtoken.

Business Highlights.

During the First Quarter of 2021, the Company achieved the following business milestones:

  • Acquired all of the capital stock of BIGtoken in a share exchange transaction, and adopted BIGtoken’s business plan
  • Between March and April 2021, we sold $4,809,827 of equity securities
  • Appointed George Stella, our Chief Revenue Officer, to the additional position of President
  • Completed restructuring sales department to better serve existing clients and expand capabilities
  • Adjusted platform matrix, which has initially resulted in enhanced user engagement
  • Realigned BIGtoken platform to increase and better focus on domestic markets until platform is ready for expansion

Financial Results for the Quarter Ended March 31, 2021

All of the below comparisons to periods prior to the completion of the share exchange transaction are based on carve-out financials and allocation of expenses agreed upon by the Company and SRAX (former parent) and may not be indicative of any future financial performance of the Company.

  • Cash Position and Liquidity: At March 31, 2021, The Company’s cash was approximately $4.85 million as compared to approximately $1,000 at December 31, 2020. The increase in cash results from the private placement of our securities during the first quarter of 2021. The Company estimates that such cash reserves will last until the fourth quarter of 2021.
  • Revenues: Revenues for the quarter ending March 31, 2021 were $855,000 compared to revenues of $193,000 during the same period ending March 31, 2020. The increase in revenue was primarily due to enhanced execution in our operations and sales departments and a focus on key products.
  • Operating Loss: Operating loss for the quarter ended March 31, 2021 was $1.52 million compared to a loss of $3.05 million for the comparable 2020 period. The decrease in operating loss for 2021 was primarily due to reductions in operating expenses, including a decrease in general and administrative expenses as a result of reductions in workforce, partially offset by an increase in users’ redemptions of points on the BIGtoken platform.

Cautionary Statement Regarding Forward Looking Information:

This news release contains “forward-looking statements” made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Force Protection Video Equipment Corp.’s periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC), and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.

 

As of March 31,

 

As of December 31,

 

2021

 

2020

Assets    
Current assets    
Cash and cash equivalents   $

4,850,000

  $

1,000

Accounts receivable  

911,000

 

1,199,000

Prepaid expenses  

82,000

 

7,000

Due from parent company  

52,000

 

Total current assets  

5,895,000

 

1,207,000

     
Noncurrent assets    
Property and equipment  

1,000

 

1,000

Goodwill  

5,445,000

 

5,445,000

Intangible assets  

775,000

 

917,000

Total noncurrent assets   $

6,221,000

  $

6,363,000

Total assets  

12,116,000

 

7,570,000

     
Liabilities and equity    
Current liabilities    
Accounts payable and accrued liabilities   $

1,091,000

  $

853,000

Other current liabilities  

313,000

 

452,000

Total current liabilities  

1,404,000

 

1,305,000

     
Total Liabilities  

1,404,000

 

1,305,000

     
Equity    
Series A Preferred Stock  

5,000

 

5,000

Series B Preferred Stock  

5,775,000

 

Series C Preferred Stock  

832,000

 

Common stock  

1,000

 

1,000

Additional paid in capital  

47,966,000

 

42,830,000

Accumulated deficit  

(43,867,000)

 

(36,571,000)

Total equity  

10,712,000

 

6,265,000

Total liabilities and equity   $

12,116,000

  $

7,570,000

 

For the Three Months Ended March 31,

 

2021

 

2020

     
Revenues   $

855,000

  $

193,000

Cost of revenues  

273,000

 

98,000

Gross profit  

582,000

 

95,000

     
Employee related costs  

565,000

 

1,714,000

Marketing and selling expenses  

166,000

 

267,000

Platform Costs  

287,000

 

293,000

Depreciation and amortization  

142,000

 

269,000

General selling general and administrative  

943,000

 

603,000

 

2,103,000

 

3,146,000

     
Loss from operations  

(1,521,000)

 

(3,051,000)

     
Other income (expense)    
Financing Costs  

 

(315,000)

Interest expense  

 

(15,000)

Change in fair value of derivative liabilities  

 

1,190,000

Exchange gain or loss  

 

(71,000)

Total other income (loss)  

 

789,000

     
Loss before provision for income taxes  

(1,521,000)

 

(2,262,000)

     
Provision for income taxes    

     
Net income (loss)  

(1,521,000)

 
     
Beneficial conversion feature of series B convertible preferred stock  

(5,775,000)

  A
     
Loss attributable to common stock   $

(7,296,000)

  $

(2,262,000)

 

 
     
Net loss per share, basic and diluted  

 

     
     
Weighted average shares outstanding – basic and diluted  

154,868,454,492.78

 

149,562,562,584.00

A – Reference: EY’s Financial reporting developments on Earnings per share issued June 2020 page 11 of 193