PLEASANT HILL, CA / ACCESSWIRE / June 17, 2016 / Textmunication Holdings, Inc., (OTC: TXHD) ("Textmunication"), a Nevada corporation, announces First Quarter Results for the Three months ended March 31, 2016:
- Revenues were $88,410 for the March 2016 quarter versus $82,278 for the March 2015 quarter
- Aspire Consulting Group, which is 49% owned, had $250,000 in gross billings during the first quarter, resulting in $10,149 in distributions and $5,616 in Income from Investment in Equity Method Investee
"The First quarter of 2016 was transformational to the business of Textmunication Holdings," said Wais Asefi, CEO. "During the first quarter, we accomplished two significant milestones: First, we partnered with significant enterprise software companies in the health and fitness industries and began to roll-out our services to their members. Second, we completed the acquisition of Aspire Consulting Group who had gross billings of $250,000 and distributed $10,149 to us as they expanded their partnerships."
In the health and fitness industries, we have exclusive partnerships with the leaders in gym management software and salon software. Under those partnerships, we provide a sophisticated texting solution to notify their customers about billing, promotions and key information. We believe these partnerships will begin to impact our financial statements in the second quarter and on through the second half of the year.
Aspire has added two significant partnerships in the past five months. They are actively bidding with their partners on significant government contracts, and as they continue to bid and win business, we believe Aspire will show significant traction in the upcoming quarters.
Our net loss of $1.2 million was mainly non-cash expenses related to financing our business by borrowing money from investors who require us to convert their notes at a discount to the market price of our stock. In the first quarter, approximately $1.0 million of the $1.2 million loss was the non-cash charges associated with these notes.
We have a plan to retire these notes, and it begins with our core business achieving cash flow positive status from operations. We are confident that we will achieve operational status by the end of the second quarter, at which point we will be able to either generate cash flow to repay the notes, or work through advisors to raise funds to consolidate and repay them. We do not believe it's in our shareholder's best interests to convert these notes and increase the number of shares outstanding.
We believe our strategic partnerships are unique for a company of our size, and as we leverage our platform and relationships, we are excited about potential for our business.
Note on forward looking statements:
Certain statements that we make may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would," as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K and subsequent Forms 10-Q, which are available on SEC's website at sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events or otherwise.
Textmunication Holdings, Inc.
SOURCE: Textmunication Holdings, Inc.