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Bright Mountain Media Reports First Quarter 2020 Financial Results

Company Expects Fiscal 2020 Revenues to Increase at Least 214% to at Least $22M

Company to Host Virtual Investor Webinar Tomorrow, Wednesday, July 1st at 11:30 a.m. Eastern Time

Boca Raton, FL, June 30, 2020 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (BMTM), an end-to-end digital media and advertising services platform, has provided its financial results for the first quarter ended March 31, 2020.

Management Commentary

“The first quarter of 2020 built upon our successes in 2019, where we successfully initiated our efforts to launch a fully integrated, end-to-end digital media and advertising services platform,” said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. “In the quarter, we saw advertisers hesitate in deploying ad dollars due to COVID related uncertainty. Despite these headwinds, Bright Mountain was able to grow revenues by 109% to $2.3 million in the first quarter of 2020, and in time, we expect these challenges to subside as we enter a more normalized environment in the back half of 2020.

“As we continue to capture more of the ad-dollar within the value chain, we create more value than the sum of our parts, allowing incredibly efficient demographic targeting with unique ad syndication capabilities. Most notably in June, we successfully acquired Wild Sky Media, an interactive media company that according to Google analytics reaches approximately 30 million monthly unique visitors through its hyper-engaging content, further strengthening our platform model. We seek to enable their robust, complimentary portfolio of websites to more efficiently create value from their niche, diverse audiences leveraging our proprietary content and ad delivery technologies.

“On the capital markets front, I am pleased to have started the process to uplist to a national exchange, which we believe will broaden our potential investor base and grow our brand reach, resulting in greater liquidity for our shareholders. We will continue to work closely with the national exchanges to execute upon this incredible milestone for our combined company.

“As we move into 2020, I am confident in our ability to execute upon the business opportunity facing us today. In fact, we expect revenues in fiscal 2020 of $22 million, an increase of 214% over fiscal 2019 revenues. I look forward to continued progress in the years ahead, creating sustainable long-term value for our shareholders,” concluded Speyer.

First Quarter 2020 Financial Summary

  • Total revenue for the first quarter of 2020, was $2.3 million, compared to revenue of $1.1 million in the same year-ago quarter. The increase in revenue was due to an increase in advertising revenue resulting from the acquisitions of Oceanside Media and MediaHouse, in spite of the negative influence of Covid-19 on the digital advertising market.
  • Selling, general and administrative expenses for the first quarter of 2020 were $4.0 million, compared to $0.9 million in the same year-ago quarter. The increase in selling, general and administrative expenses included $1.0 million of non-cash amortization of intangible assets, $0.4 million in non-cash expenses associated with an equity raise and $0.3 million of acquisition related audit and consulting fees.
  • Net loss for the first quarter of 2020 was $3.5 million, compared to a net loss of $0.7 million in the same year-ago quarter. The increase in net loss was primarily related to aforementioned non-cash operating expenses.
  • Cash and cash equivalents and short-term deposits were $1.3 million as of March 31, 2020, compared with $1.0 million as of March 31, 2019.
  • Cash used in operations for the first quarter of 2020 was $1.4 million, compared with cash used in operations of $0.6 million in the same year-ago quarter.    

Financial Guidance

Management expects revenues in fiscal 2020 to be at least $22.0 million, representing an increase of at least 214% when compared to revenues of $7.0 million in fiscal 2019.

Virtual Roadshow Webinar

The Company will host a virtual roadshow webinar tomorrow, July 1st, 2020 at 11:30 a.m. Eastern time, where Greg Peters, President and Chief Operating Officer of Bright Mountain Media, will present an overview of the business model and discuss recent growth initiatives, including the recent acquisition of Wild Sky Media. The webinar will be accompanied by a presentation and followed by a question and answer session, which can be accessed via the webcast link or dial-in numbers below.

To access the webinar, please use the following information:

Date: Wednesday, July 1st, 2020        
Time: 8:30 a.m. Pacific time (11:30 a.m. Eastern time)       
Dial-in: 1-888-204-4368         
International Dial-in: 1-323-994-2093           
Conference Code: 4978335   
Webcast: http://public.viavid.com/index.php?id=140018    

A telephone replay will be available approximately two hours after the call and will run through October 1st, 2020 by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 4978335. The replay can also be viewed through the webinar webcast link above.

About Bright Mountain Media

Bright Mountain Media, Inc. (BMTM) is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. Through the removal of middlemen in the advertising services process, Bright Mountain Media efficiently connects brands with targeted consumer demographics while maximizing revenue to publishers. Bright Mountain Media’s assets include the Bright Mountain Media ad network, MediaHouse (f/k/a NDN), Oceanside (f/k/a S&W Media), CL Media Holdings (d/b/a/ Wild Sky Media) and 24 owned and/or managed websites. For more information, please visit brightmountainmedia.com.

Forward-Looking Statements for Bright Mountain Media, Inc.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes, ” and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to close the proposed acquisition of Inform, Inc., any the realization of any expected benefits from such transaction if closed. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Bright Mountain Media, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on May 14, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Contact:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
949-259-4987
BMTM@mzgroup.us
www.mzgroup.us

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

    March 31, 2020     December 31, 2019  
    (unaudited)        
ASSETS                
Current Assets                
Cash and cash equivalents   $ 1,270,023     $ 957,013  
Accounts receivable, net     3,207,560       3,997,475  
Note receivable, net     38,329       63,812  
Prepaid expenses and other current assets     485,074       752,975  
Current assets - discontinued operations     -       1,705  
                 
Total Current Assets     5,000,986       5,772,980  
                 
Property and equipment, net     25,413       30,666  
Website acquisition assets, net     35,316       48,928  
Intangible assets, net     18,671,791       19,610,801  
Goodwill     53,646,856       53,646,856  
Prepaid services/consulting agreements - long term     775,000       913,182  
Right of use asset     348,721       397,912  
Other assets     94,672       35,823  
Total Assets   $ 78,598,755     $ 80,457,148  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current Liabilities                
Accounts payable   $ 8,152,462     $ 8,358,442  
Accrued expenses     893,540       3,228,328  
Accrued interest to related party     8,652       6,629  
Premium finance loan payable     125,453       179,844  
Deferred revenues     18,609       6,651  
Long term debt, current portion     165,163       165,163  
Operating lease liability, current portion     215,004       211,744  
Current liabilities - discontinued operations     -       591  
Total Current Liabilities     9,578,883       12,157,392  
                 
Long term debt to related parties, net     29,179       25,689  
Deferred tax liability     516,941       581,440  
Operating lease liability, net of current portion     130,979       198,232  
Total Liabilities     10,255,982       12,962,753  
Commitments and Contingencies                
Shareholders’ Equity                
Convertible preferred stock, par value $0.01, 20,000,000 shares authorized,                
Series A-1, 2,000,000 shares designated, 1,200,000 and 1,200,000 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively     12,000       12,000  
Series B-1, 6,000,000 shares designated, 0 and 0 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively     -       -  
Series E, 2,500,000 shares designated, issued and outstanding at March 31, 2020 and December 31, 2019, respectively     25,000       25,000  
Series F, 4,344,017 shares designated, issued and outstanding at March 31, 2020 and December 31, 2019, respectively     43,440       43,440  
Common stock, par value $0.01, 324,000,000 shares authorized, 106,732,860 and 100,244,312 issued and 84,491,031 and 78,063,531 outstanding at March 31, 2020 and December 31, 2019, respectively     1,067,329       1,002,444  
Additional paid-in capital     91,099,013       86,856,500  
Accumulated deficit     (23,904,009 )     (20,444,989 )
Total shareholders’ equity     68,342,773       67,494,395  
Total Liabilities and Shareholders’ Equity   $ 78,598,755     $ 80,457,148  

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    For the Three Months Ended March 31,  
    2020     2019  
             
Revenues                
Advertising   $ 2,270,186     $ 1,085,456  
                 
Cost of revenue                
Advertising     1,823,082       885,696  
Gross profit     447,104       199,760  
                 
Selling, general and administrative expenses     3,979,378       915,954  
                 
Loss from continuing operations     (3,532,274 )     (716,194 )
                 
Other income (expense)                
Interest income     10,993       6,006  
Gain on settlement of liability     -       122,500  
Other expense     (215 )     -  
Interest expense     -       (909 )
Interest expense - related party     (2,023 )     (6,201 )
Total other income     8,755       121,396  
                 
Net loss from continuing operations before tax     (3,523,519 )     (594,798 )
                 
Loss from discontinued operations     -       (115,464 )
                 
Net loss before tax     (3,523,519 )     (710,262 )
                 
Income tax benefit     64,499       -  
                 
Net loss     (3,459,020 )     (710,262 )
                 
Preferred stock dividends                
Series A-1, Series E, and Series F preferred stock     (118,252 )     (74,171 )
                 
Net loss attributable to common shareholders   $ (3,577,272 )   $ (784,433 )
                 
Basic and diluted net loss from continuing operations per share   $ (0.03 )   $ (0.01 )
Basic and diluted net loss from discontinued operations per share   $ 0.00     $ (0.00 )
Basic and diluted net loss per share   $ (0.03 )   $ (0.01 )
Weighted average shares outstanding - basic and diluted     106,098,560       62,900,662  

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
March 31, 2020
(Unaudited)

    For the Three Months Ended March 31,  
    2020     2019  
Cash flows from operating activities:                
Net loss   $ (3,459,020 )   $ (710,262 )
Add back: loss attributable to discontinued operations     -       115,464  
Adjustments to reconcile net loss to net cash used in operations:                
Depreciation     5,253       2,352  
Amortization of debt discount     3,490       3,452  
Amortization     952,622       35,813  
Gain on settlement of liability     -       (122,500 )
Stock option compensation expense     36,595       3,213  
Stock issued for services rendered     91,718       -  
Non-cash acquisition fee     275,000       -  
Change in deferred taxes     (64,499 )     -  
Provision for bad debt     -       4,034  
Changes in operating assets and liabilities:                
Accounts receivable     789,915       (375,928 )
Prepaid expenses and other current assets     314,015       29,361  
Prepaid services/consulting agreements     93,182       127,500  
Other assets     (58,849 )     (4,703 )
Right of use asset and lease liability     (14,802 )     -  
Accounts payable     (205,980 )     360,393  
Accrued expenses     (141,893 )     (26,538 )
Accrued interest – related party     2,023       -  
Deferred revenues     11,958       2,485  
Net cash (used in) continuing operations for operating activities     (1,369,272 )     (555,864 )
Net cash (used in) discontinued operations     -       (73,589 )
Net cash (used in) operating activities     (1,369,272 )     (629,453 )
                 
Cash flows from investing activities:                
Cash paid for website acquisition     -       (8,000 )
Net cash (used in) investing activities     -       (8,000 )
                 
Cash flows from financing activities:                
Proceeds from issuance of common stock, net     1,734,937       873,950  
Payments of premium finance loan payable     (54,391 )     (32,331 )
Dividend payments     (23,747 )     (74,171 )
Principal payments received (funded) for notes receivable     25,483       (64,681 )
Note receivable funded     -       (375,303 )
Net cash provided by financing activities     1,682,282       327,464  
                 
Net increase (decrease) in cash and cash equivalents including cash and cash equivalents classified within assets related to continuing operations     313,010       (309,989 )
Net decrease in cash and cash equivalents classified within assets related to discontinued operations     -       (4,943 )
Net increase (decrease) in cash and cash equivalents     313,010       (314,932 )
Cash and cash equivalents at the beginning of period     957,013       1,042,457  
Cash and cash equivalents at end of period   $ 1,270,023     $ 727,525