BIGtoken Reports 2021 First Quarter Results

Rhea-AI Summary

Force Protection Video Equipment Corp. (OTC: FPVD), known as BIGtoken, reported financial results for Q1 2021. The company aims to enhance its data marketplace and has focused on creating targeted reach for clients while developing its blockchain technology. Key accomplishments include acquiring BIGtoken's capital stock, raising $4.81 million from equity sales, and restructuring its sales department. Financially, revenues rose to $855,000, up from $193,000 year-over-year, while operating loss decreased to $1.52 million from $3.05 million, mainly due to reduced operating expenses.

Positive

• Revenue increased to $855,000, up from $193,000 year-over-year.
• Operating loss decreased to $1.52 million from $3.05 million, indicating improved financial management.
• Raised $4.81 million from equity sales, enhancing cash position to approximately $4.85 million.

Negative

• Operating loss of $1.52 million still reflects significant financial challenges.
• Increased user redemptions of points on the BIGtoken platform may impact future profitability.

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

 

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FAQ

What were Force Protection Video Equipment Corp.'s Q1 2021 revenues?

The revenues for Q1 2021 were $855,000, compared to $193,000 in Q1 2020.

How much cash did FPVD have as of March 31, 2021?

FPVD reported approximately $4.85 million in cash as of March 31, 2021.

What is the operating loss for FPVD in Q1 2021?

The operating loss for Q1 2021 was $1.52 million, improved from $3.05 million in the same period in 2020.

What strategic changes did FPVD implement in Q1 2021?

FPVD acquired BIGtoken's capital stock, restructured its sales department, and adjusted its platform for better user engagement.

What does FPVD focus on in its business model?

FPVD focuses on creating targeted reach for brand clients and enhancing its data marketplace via blockchain technology.