U.S. Markets open in 1 hr 42 mins

Net Element, Inc. (NETE)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Add to watchlist
10.24-1.16 (-10.18%)
At close: 4:00PM EST

10.35 +0.11 (1.07%)
Before hours: 7:32AM EST

Full screen
Trade prices are not sourced from all markets
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Neutralpattern detected
Previous Close11.40
Open11.38
Bid10.38 x 1800
Ask10.45 x 2200
Day's Range9.95 - 11.52
52 Week Range1.47 - 20.08
Volume908,396
Avg. Volume1,871,161
Market Cap49.615M
Beta (5Y Monthly)1.71
PE Ratio (TTM)N/A
EPS (TTM)-1.62
Earnings DateNov 16, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est30.00
  • NETE: Q3 2020 Revenues Improve Despite Continued Shutdowns in NY and California
    Zacks Small Cap Research

    NETE: Q3 2020 Revenues Improve Despite Continued Shutdowns in NY and California

    By Lisa Thompson NASDAQ:NETE READ THE FULL NETE RESEARCH REPORT Net Element (NASDAQ:NETE) is showing surprising business strength despite lockdowns persisting in New York where it has a numerous customers in the restaurant business. Management claims the US economy is running on the Sunbelt and business could be gangbusters if shut down states would just open up. While it is impossible to predict

  • Net Element Reports Third Quarter 2020 Financial Results
    GlobeNewswire

    Net Element Reports Third Quarter 2020 Financial Results

    MIAMI, Nov. 16, 2020 (GLOBE NEWSWIRE) -- via InvestorWire – Net Element, Inc. (NASDAQ: NETE) (“Net Element” or the “Company”), a global technology and value-added solutions group that supports electronic payments acceptance in a multichannel environment including point of sale (“POS”), e-commerce and mobile devices, today reports its financial results for the third quarter ended Sept. 30, 2020. Third Quarter 2020 Financial Results * Total transaction volume increased to $956.2 million, as compared to $953.7 million for the same comparable period in 2019. * Net revenues decreased to $16.7 million, as compared to $16.8 million for the same comparable period in 2019. * North American Transaction Solutions revenue increased to $16.07 million, as compared to $15.9 million for the same comparable period in 2019. * International Transaction Solutions revenue decreased to $0.67 million, as compared to $0.90 million for the same comparable period in 2019. * Operating expenses increased to $4.1 million, as compared to $3.6 million for the same comparable period. * Gross margin decreased to $2.2 million, as compared to $2.7 million for the same comparable period in 2019.“We continue working diligently in an effort to finalize the Mullen merger for the benefit of our shareholders,” commented Oleg Firer, Executive Chairman of Net Element.Results of Operations for the Three Months Ended Sept. 30, 2020, Compared to the Three Months Ended Sept. 30, 2019The Company reported a net loss attributable to common stockholders of approximately $2.3 million or $0.52 per share loss for the three months ended Sept. 30, 2020 as compared to a net loss of approximately $1.0 million or $0.24 per share loss for the three months ended Sept. 30, 2019. The increase in net loss attributable to stockholders of approximately $1.3 million was primarily due to an increase in non-cash compensation of approximately $1.1 million and an increase in bad debt expense of approximately $200,000.The following tables set forth the Company’s sources of revenues, cost of revenues and the respective gross margins for the three months ended Sept. 30, 2020 and 2019.QTD                     Three   Three          Months Ended   Months Ended   Increase /    Source of Revenues September 30, 2020 Mix September 30, 2019 Mix (Decrease) % change  North American Transaction Solutions $16,072,518 96.0% $15,923,805 94.7% $148,713  0.93%  International Transaction Solutions  661,856 4.0%  895,881 5.3%  (234,025) -26.12%     Total $16,734,374 100.0% $16,819,686 100.0% $(85,312)                     Three   Three          Months Ended % of Months Ended % of Increase /    Cost of Revenues September 30, 2020 revenues September 30, 2019 revenues (Decrease)    North American Transaction Solutions $14,083,449 87.6% $13,414,334 84.2% $669,115  4.99%  International Transaction Solutions  476,741 72.0%  664,907 74.2%  (188,166) -28.30%     Total $14,560,190 87.0% $14,079,241 83.7% $480,949                      Three   Three          Months Ended % of Months Ended % of Increase /    Gross Margin September 30, 2020 revenues September 30, 2019 revenues (Decrease)    North American Transaction Solutions $1,989,069 12.4% $2,509,471 15.8% $(520,402) -20.74%  International Transaction Solutions  185,115 28.0%  230,974 25.8%  (45,859) -19.85%     Total $2,174,184 13.0% $2,740,445 16.3% $(566,261)                                  YTD                     Nine   Nine          Months Ended   Months Ended   Increase /    Source of Revenues September 30, 2020 Mix September 30, 2019 Mix (Decrease) % change  North American Transaction Solutions $44,204,134 95.5% $46,025,308 95.2% $(1,821,174) -3.96%  International Transaction Solutions  2,086,415 4.5%  2,328,871 4.8%  (242,456) -10.41%     Total $46,290,549 100.0% $48,354,179 100.0% $(2,063,630)                     Nine   Nine          Months Ended % of Months Ended % of Increase /    Cost of Revenues September 30, 2020 revenues September 30, 2019 revenues (Decrease)    North American Transaction Solutions $37,923,749 85.8% $38,627,147 83.9% $(703,398) -1.82%  International Transaction Solutions  1,473,635 70.6%  1,613,607 69.3%  (139,972) -8.67%     Total $39,397,384 85.1% $40,240,754 83.2% $(843,370)                     Nine   Nine          Months Ended % of Months Ended % of Increase /    Gross Margin September 30, 2020 revenues September 30, 2019 revenues (Decrease)    North American Transaction Solutions $6,280,385 14.2% $7,398,161 16.1% $(1,117,776) -15.11%  International Transaction Solutions  612,780 29.4%  715,264 30.7%  (102,484) -14.33%     Total $6,893,165 14.9% $8,113,425 16.8% $(1,220,260)                   Net revenues consist primarily of service fees from transaction processing. Net revenues were approximately $16.8 million for the three months ended Sept. 30, 2020 and 2019. Cost of revenues represents direct costs of generating revenues, including commissions, mobile operator fees, interchange expense, processing, and non-processing fees. Cost of revenues for the three months ended Sept. 30, 2020 were approximately $14.6 million as compared to approximately $14.1 million for the three months ended Sept. 30, 2019.The gross margin for the three months ended Sept. 30, 2020 was approximately $2.2 million, or 13.0% of net revenues, as compared to approximately $2.7 million, or 16.3% of net revenues, for the three months ended Sept. 30, 2019. The primary reason for the decrease in the overall gross margin percentage was primarily the result of the competitive pressure in our industry, relating to costs that can be passed through to our merchants.Operating Expenses Analysis:Operating expenses were approximately $4.1 million for the three months ended Sept. 30, 2020, as compared to $3.6 million for three months ended Sept. 30, 2019. Operating expenses for the three months ended Sept. 30, 2020, primarily consisted of selling, general and administrative expenses of approximately $1.6 million, non-cash compensation of approximately $1.1 million, bad debt expense of approximately $600,000, and depreciation and amortization expense of approximately $750,000. Operating expenses for the three months ended Sept. 30, 2019, primarily consisted of selling, general and administrative expenses of approximately $2.4 million, bad debt expense of approximately $400,000, and depreciation and amortization expenses of approximately $750,000. The increase in operating expenses was primarily related to the non-cash compensation with a corresponding decrease in selling, general, and administrative expenses due to the reduction of the labor force and the compensation of certain employees and executives of the Company, as compared to the previous corresponding quarter.The components of the Company’s selling, general and administrative expenses are reflected in the tables below.Selling, general and administrative expenses for the three months ended Sept. 30, 2020 and 2019 consisted of operating expenses not otherwise delineated in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss, as follows:QTD          YTD          Three months ended September 30, 2020          Nine months ended September 30, 2020                                Category North American Transaction Solutions International Transaction Solutions Corporate Expenses & Eliminations Total  Category North American Transaction Solutions International Transaction Solutions Corporate Expenses & Eliminations Total                                      Salaries, benefits, taxes and contractor payments$563,948  $95,254  $84,688  $743,890   Salaries, benefits, taxes and contractor payments$1,649,488  $300,221  $753,983  $2,703,692   Professional fees  91,468   29,523   251,262   372,253   Professional fees  253,046   117,951   748,210   1,119,207   Rent  16,664   16,183   10,568   43,415   Rent  34,307   46,341   102,076   182,724   Business development  42,198   2,500   2,929   47,627   Business development  153,547   2,517   8,836   164,900   Travel expense  1,306   12,396   39,506   53,208   Travel expense  6,615   46,892   135,032   188,539   Filing fees  -   -   18,916   18,916   Filing fees  -   -   56,254   56,254   Transaction gains  -   12,641   -   12,641   Transaction gains  -   89,140   -   89,140   Office expenses  65,208   2,961   18,091   86,260   Office expenses  184,692   13,688   63,065   261,445   Communications expenses  33,387   32,210   25,707   91,304   Communications expenses  122,158   121,574   61,578   305,310   Insurance expense  -   -   46,772   46,772   Insurance expense  -   -   127,457   127,457   Other expenses  2,561   2,065   126,684   131,310   Other expenses  2,990   4,168   142,991   150,149      Total $816,740  $205,733  $625,123  $1,647,596      Total $2,406,843  $742,492  $2,199,482  $5,348,817                                               Three months ended September 30, 2019          Nine months ended September 30, 2019                                Category North American Transaction Solutions International Transaction Solutions Corporate Expenses & Eliminations Total  Category North American Transaction Solutions International Transaction Solutions Corporate Expenses & Eliminations Total                                      Salaries, benefits, taxes and contractor payments$304,391  $124,921  $729,426  $1,158,738   Salaries, benefits, taxes and contractor payments$926,868  $400,943  $2,294,391  $3,622,202   Professional fees  125,713   58,478   486,984   671,175   Professional fees  400,058   186,440   1,334,367   1,920,865   Rent  -   23,048   51,795   74,843   Rent  -   57,144   157,086   214,230   Business development  75,414   540   18,707   94,661   Business development  168,582   1,655   28,821   199,058   Travel expense  36,337   10,553   18,466   65,356   Travel expense  95,984   24,038   83,833   203,855   Filing fees  -   -   37,213   37,213   Filing fees  -   -   78,125   78,125   Transaction losses  -   7,169   -   7,169   Transaction losses  -   (36,923)  -   (36,923)  Office expenses  91,051   4,460   12,093   107,604   Office expenses  249,232   14,485   38,406   302,123   Communications expenses  39,530   61,428   17,710   118,668   Communications expenses  119,233   158,495   59,584   337,312   Insurance expense  -   -   42,418   42,418   Insurance expense  -   -   112,932   112,932   Other expenses  15,073   1,672   4,196   20,941   Other expenses  12,639   7,610   108,693   128,942      Total $687,509  $292,269  $1,419,008  $2,398,786      Total $1,972,596  $813,887  $4,296,238  $7,082,721                         Variance          Variance                                Category North American Transaction Solutions International Transaction Solutions Corporate Expenses & Eliminations Total  Category North American Transaction Solutions International Transaction Solutions Corporate Expenses & Eliminations Total                                      Salaries, benefits, taxes and contractor payments$259,557  $(29,667) $(644,738) $(414,848)  Salaries, benefits, taxes and contractor payments$722,620  $(100,722) $(1,540,408) $(918,510)  Professional fees  (34,245)  (28,955)  (235,722)  (298,922)  Professional fees  (147,012)  (68,489)  (586,157)  (801,658)  Rent  16,664   (6,865)  (41,227)  (31,428)  Rent  34,307   (10,803)  (55,010)  (31,506)  Business development  (33,216)  1,960   (15,778)  (47,034)  Business development  (15,035)  862   (19,985)  (34,158)  Travel expense  (35,031)  1,843   21,040   (12,148)  Travel expense  (89,369)  22,854   51,199   (15,316)  Filing fees  -   -   (18,297)  (18,297)  Filing fees  -   -   (21,871)  (21,871)  Transaction gains  -   5,472   -   5,472   Transaction gains  -   126,063   -   126,063   Office expenses  (25,843)  (1,499)  5,998   (21,344)  Office expenses  (64,540)  (797)  24,659   (40,678)  Communications expenses  (6,143)  (29,218)  7,997   (27,364)  Communications expenses  2,925   (36,921)  1,994   (32,002)  Insurance expense  -   -   4,354   4,354   Insurance expense  -   -   14,525   14,525   Other (income) expenses  (12,512)  393   122,488   110,369   Other (income) expenses  (9,649)  (3,442)  34,298   21,207      Total $129,231  $(86,536) $(793,885) $(751,190)     Total $434,247  $(71,395) $(2,096,756) $(1,733,904)                        Salaries, benefits, taxes and contractor payments decreased by approximately $0.4 million on a consolidated basis for the three months ended Sept. 30, 2020 as compared to the three months ended Sept. 30, 2019. This was primarily due to necessary reductions in staffing and the reduction of compensation of certain employees and executives of the Company, due to the effects of the COVID-19 pandemic on Net Element’s operations.Reconciliation of Non-GAAP Financial Measures and Regulation G DisclosureTo supplement its consolidated financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company provides additional measures of its operating results by disclosing its adjusted net loss attributable to Net Element, Inc. stockholders. Adjusted net loss attributable to Net Element stockholders is calculated as net loss attributable to Net Element stockholders excluding non-cash share-based compensation. The Company discloses this amount on an aggregate and per-share basis. These measures meet the definition of non-GAAP financial measures. The Company believes that application of these non-GAAP financial measures is appropriate to enhance the understanding of the Company’s investors regarding its historical performance through the use of a metric that seeks to normalize period-to-period earnings. A reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP for the quarter ended Sept. 30, 2020, and Sept. 30, 2019, is presented in the following tables.       GAAP  Share-based Compensation  Adjusted Non-GAAP Three Months Ended September 30, 2020    Net loss attributable to Net Element Inc stockholders$(2,329,570)$1,089,113$(1,240,457) Basic and diluted earnings per share$(0.52)$0.24$(0.28) Basic and diluted shares used in computing earnings per share 4,498,510   4,498,510  Three Months Ended September 30, 2019    Net loss attributable to Net Element Inc stockholders$(1,010,627)$15,008$(995,619) Basic and diluted earnings per share$(0.24)$-$(0.24) Basic and diluted shares used in computing earnings per share 4,152,433   4,152,433         GAAP  Share-based Compensation  Adjusted Non-GAAP Nine Months Ended September 30, 2020    Net loss attributable to Net Element Inc stockholders$(4,021,057)$1,135,013$(2,886,044) Basic and diluted earnings per share$(0.94)$0.27$(0.67) Basic and diluted shares used in computing earnings per share 4,264,624   4,264,624  Nine Months Ended September 30, 2019    Net loss attributable to Net Element Inc stockholders$(3,668,921)$2,035,855$(1,633,066) Basic and diluted earnings per share$(0.91)$0.50$(0.41) Basic and diluted shares used in computing earnings per share 4,033,521   4,033,521  Use of Non-GAAP Financial Measures Non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP measures exclude significant expenses that are required by GAAP to be recorded in the Company's financial statements and are subject to inherent limitations.About Net Element Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise ("SME") in the U.S. and selected emerging markets. On Aug. 5, 2020, Net Element announced the execution of a definitive agreement (the “Merger Agreement”) to merge with privately-held Mullen Technologies, Inc. (“Mullen”), a Southern California-based electric vehicle company in a stock-for-stock reverse merger in which Mullen’s stockholders will receive a majority of the outstanding stock in the post-merger company (the “contemplated merger”). That contemplated merger is subject to customary closing conditions, regulatory approvals and shareholder approval for both companies.Forward-Looking Statements Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Net Element and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to what the ultimate impact of the COVID-19 pandemic will have on the Company and its operations, whether the proposed merger with Mullen will be consummated, including the receipt and timing of required approvals and satisfaction of other conditions to the closing of the proposed merger and the related transactions contemplated in the merger agreement, whether the Company will achieve growth or achieve its goals and when the Company will reach profitability. Additional examples of such risks and uncertainties include, but are not limited to (i) Net Element's ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Net Element's ability to maintain existing, and secure additional, contracts with users of its payment processing services; (iii) Net Element's ability to successfully expand in existing markets and enter new markets; (iv) Net Element's ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Net Element's business; (viii) changes in government licensing and regulation that may adversely affect Net Element's business; (ix) the risk that changes in consumer behavior could adversely affect Net Element's business; (x) Net Element's ability to protect its intellectual property; (xi) local, industry and general business and economic conditions; and (xii) adverse effects of potentially deteriorating U.S.-Russia relations, including, without limitation, over a conflict related to Ukraine, including a risk of further U.S. government sanctions or other legal restrictions on U.S. businesses doing business in Russia. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Net Element with the Securities and Exchange Commission. Net Element anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Net Element assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company’s plans and expectations as of any subsequent date.Contact: Net Element, Inc. Tel. +1 (786) 923-0502 Media@NetElement.com www.netelement.com

  • SHAREHOLDER INVESTIGATION: Halper Sadeh LLP is Investigating the Following Companies; Investors are Encouraged to Contact the Firm - CBMG, VRTU, NTN, NETE
    ACCESSWIRE

    SHAREHOLDER INVESTIGATION: Halper Sadeh LLP is Investigating the Following Companies; Investors are Encouraged to Contact the Firm - CBMG, VRTU, NTN, NETE

    NEW YORK, NY / ACCESSWIRE / October 6, 2020 / Halper Sadeh LLP, a global investor rights law firm, is investigating:Cellular Biomedicine Group, Inc.