Company posts 2018 Increase of Net Shareholder Equity of $233 Million or $10 per share
New York, NY, June 10, 2019 (GLOBE NEWSWIRE) -- Pulse Evolution Group, Inc. (DGLF), a leading developer of hyper-realistic digital humans for entertainment, virtual reality, augmented reality and artificial intelligence, today announced financial results for the year ended December 31, 2018.
We are pleased to announce our audited results for the year 2018,” stated Pulse CEO John Textor, “Such results reflect the completion of a transformational business combination, a dramatic step-up in acquired technology assets and net shareholder equity, and the completion of several corporate governance upgrades, as we prepare our platform to develop and roll-up the lucrative and sizeable digital human industry.”
Highlights of our 2018 Annual Report are as follows:
- Acquisition of substantially all of Evolution AI Corporation, a development stage artificial intelligence company, which included a 58% interest in Pulse Evolution Corporation, a globally recognized pioneer in the development of hyper-realistic digital humans;
- Total Assets of $286.1 million for the year ended December 31, 2018, compared to $86,000 for year ended December 31, 2017. Total Assets for year-end 2018 includes our third-party valuation of technology and other intangible assets of $136.2 million and $150.0 million of acquisition-related goodwill;
- Total Stockholders’ Equity of $232.6 million, or $10.17 per share, for the year ended December 31, 2018, compared to a deficit of $3.1 million, or $(0.14) per share, for year ended December 31, 2017;
- Net decrease in cash of $46,000 for the year ended December 31, 2018, comprised of cash used in operating activities of $3.15 million and cash proceeds from financing activities of $3.11 million;
Highlights of our reported Subsequent Events are as follows:
- During the first quarter of 2019, the Company issued common shares to Tsang’s Group of Hong Kong in exchange for a cash investment of $1.1 million, at a purchase price of $11.28 per share. The Company has also granted to Tsang’s Group warrants to acquire an additional 200,000 common shares, subject to exercise prices of between $11.00 and $13.50 per share, or $11.31 on a weighted average basis, payable in cash only at any time prior to March 31, 2020.
- During the second quarter of 2019, the Company announced its investment and production company participation in Broadway Asia’s production of DreamWorks’ Kung Fu Panda Spectacular Live, a live theatrical show opening at the Venetian Theatre in Macau, Hong Kong in January 2020
- Also in the second quarter of 2019, the Company announced its prepayment of all high-risk convertible notes, with cash prepayments of $1.6 million during 2018, and an additional $843,000 of prepayments during 2019. The Company now has a zero balance of high-risk structured debt.
“The year 2018 was certainly a remarkable and transformational year for our company,” commented Pulse Chairman Alexander Bafer, “We began 2017 as a promising virtual reality company with no global profile. We finished the year with a technology portfolio that leading entertainment companies have called the gold standard of human animation, well positioned to be a leader in the development and roll-up acquisition of the emerging global industry for digital human applications.”
About Pulse Evolution Group, Inc.
New Website: http://www.PulseEvolution.com
Pulse Evolution Group, Inc. (DGLF) is a developer of hyper-realistic digital humans – computer generated assets that can be distributed across the full spectrum of traditional media and emerging display technologies, including live entertainment, virtual reality, augmented reality, mobile, interactive and artificial intelligence applications. The Company’s business plan is to generate revenues through the development and deployment of digital human characters, and related software, but also through the roll-up acquisition of the digital human industry. The Company believes it has the opportunity to make strategic acquisitions of technology and revenue-generating companies, to become a dominant global leader in a sizable and lucrative digital human industry that is, thus far, largely unrecognized as an industry.
In August 2018, the Company acquired Evolution AI Corporation, a developer of digital humans as an ‘inter-Face’ of artificial intelligence applications, including its majority interest in Pulse Evolution Corporation (PLFX), a globally recognized leader in the development of hyper-realistic digital humans for entertainment. Evolution AI Corporation’s John Textor, previously described by Forbes magazine as “Hollywood’s Virtual Reality Guru”, now serves as the Company’s CEO. Together with Chairman Alexander Bafer, the Company’s management is committed to applications of Mixed Reality (VR and AR) and the important role that digital humans and artificial intelligence will play in the world of immersive entertainment. Our leadership team is currently focused on applications of digital humans in entertainment. We believe the entertainment industry provides us with attractive near-term opportunities to put digital humans to work in proven performance-oriented business models, while also allowing us to use the visibility of our globally recognized celebrities to showcase our digital human technologies and their applications across other industries. Accordingly, our current business plan is to generate revenues from our digital human representations of some of the world’s best-known living and late celebrities.
Beyond entertainment, we believe our specific business opportunity will be driven by the rapid evolution of the methods by which people access information and content through various forms of interactive electronic media. We believe that we are moving toward a world in which we will simply ask a computer a question and we will be given an answer, by a hyper-realistic digital human who possesses a universe of accurate and relevant information. Through our continued development of the world’s most advanced human animation technology, and our collaboration with the larger community of artificial intelligence pioneers, we expect that we will do more than just put a face on ‘AI.’ We intend to build your most knowledgeable teacher, your most trusted advisor, and in a digital world that reveals more possibilities each day, maybe even your best friend.
Now, with a complete understanding of creative and technical content creation, a global reputation for delivering some of the world’s most visually stunning imagery, including our unprecedented hyper-realistic digital humans, and with proprietary technology that is as attractive to strategic partners as it is to consumers, we believe the Company has a profound and global opportunity to capitalize on the most lucrative business opportunities across the industries of entertainment, education, communications and artificial intelligence.
Our most recent SEC filings and financial information can be found on the Securities and Exchange Commission's website at www.SEC.gov
FORWARD-LOOKING STATEMENTS; ADDITIONAL INFORMATION
Certain statements in this communication may be “forward-looking statements” that are subject to risks and uncertainties, are based on management’s current expectations, and as a result of the following risks and uncertainties, among others, actual results and events may differ materially; the successful integration of Pulse Evolution Group (formerly Recall Studios), Evolution AI, and Pulse Evolution Corporation, and the ability to realize synergies and other benefits; the availability of funds to meet debt obligations and to fund operations and necessary capital expenditures; and other risks and uncertainties detailed our filings with the Securities and Exchange Commission. More information on potential factors that could affect our financial results is included from time to time in our SEC filings and reports. Pulse Evolution Group disclaims any obligation to update information contained in these forward-looking statements.
Pulse Evolution Group, Inc.