VNUE REPORTS YEAR-END RESULTS

Rhea-AI Summary

VNUE, Inc. (OTC: VNUE) reported a substantial operating loss of $22,973,109 for the year ending December 31, 2022, contrasting with a net income of $2,920,382 in 2021. Key non-recurring expenses included $15,300,000 for Series C Preferred Stock issuance and $4,261,683 for goodwill impairment. Adjusted net loss from operations was $1,496,693 in 2022 compared to $984,839 in 2021. Despite the losses, VNUE highlighted strategic milestones such as securing $1,500,000 in equity funding for the StageIt acquisition and partnering with Roblox for a metaverse concert project. The company also launched its Soundstr music recognition platform and expanded StageIt internationally. CEO Zach Bair remains optimistic about future growth, emphasizing significant progress despite the challenges faced in a post-COVID environment.

Positive

• Secured $1,500,000 in equity funding for acquisition of StageIt.
• Established partnership with Roblox for metaverse concert projects.
• Launched Soundstr music recognition platform.
• Expanded StageIt into international markets.

Negative

• Operating loss of $22,973,109 for 2022.
• Adjusted net loss from operations increased to $1,496,693 in 2022 from $984,839 in 2021.
• Goodwill impairment of $4,261,683 due to slower than expected progress at StageIt.

NEW YORK, April 18, 2023 /PRNewswire/ -- VNUE, Inc (OTC: "VNUE") reported results for the year ended December 31, 2022.

The Company reported an operating loss of $22,973,109 ($0.02 per share) for the year ended December 31, 2022, compared to a net income of $2,920,382 ($0.00 per share) for the year ended December 31, 2021.  Both years contain one-time, non-recurring expenses primarily dealing with non-cash stock-based related charges as well as derivative reversals, and goodwill and intangible asset write-downs.  For this reason, the Company believes that a non-GAAP presentation of its operating loss for 2022 as well as the comparison to 2021 will be beneficial to investors for them to be able to obtain a better understanding of the Company's operating results and progress for the current and prior year.  The following is a brief description of these non-recurring items:

2022 Items Include:

• A non-cash charge of $15,300,000 related to the issuance of Series C Preferred Stock
• A charge of $4,261,683 for the impairment of goodwill and intangible assets, net of the earnout reversal of the Stage It acquisition
• $758,333 in non-cash amortization of intangible assets

2021 Items Include:

• A non-cash gain of $3,156,582 for the reversal of derivative liabilities
• A non-cash gain of $1,172,789 from the reversal of an accrued liability

Excluding these items in both years the Company's adjusted net loss from operations, which is a non-GAAP measure, amounted to $1,496,693 and $984,839 for the years ended December 31, 2022, and December 31, 202,1 respectively.

Zach Bair, VNUE's Chairman, and CEO stated. "Despite the challenging environment we have operated in, especially in the post-COVID era, we made significant progress during 2022, which includes key milestones and events that have laid the foundation for future growth at the Company."

These items include:

• Secured $1,500,000 in equity funding for the acquisition of StageIt;
• Acquired StageIt, which expanded our offering to musicians and consumers, and which opened the door to building a relationship with Roblox, one of the leading metaverse gaming platforms, attracting as many as 50 million simultaneous users per day.
• Signed a deal with Kokku, one of the leading Roblox developers, to roll out a groundbreaking metaverse persistent concert and festival environment in the Roblox environment the VNUE, "ICON" project. The ICON project, which is nearing completion, is anticipated to deliver multiple virtual stages that may be used throughout the year for virtual concerts, and which will feature multiple layers of gaming and opportunities for sales of real and virtual merchandise.
• Produced a StageIt live stream concert with Grammy-award-winning superstar Rob Thomas, which subsequently raised over $130,000 through the sale of admissions to the performance.
• Produced a StageIt live stream concert for major Italian recording artist Il Volo, an arena show, which represented the largest live stream undertaking the Company has done to date;
• Announced our proprietary Soundstr MDM platform, which is currently being introduced into the market, and reported progress in the deployment of Soundstr into several markets including Key West. Soundstr is VNUE's proprietary music and content recognition platform, which can identify music played in public spaces, such as bars, restaurants, and other types of businesses, as well as online streaming content;
• Produced a 5-show event on StageIt with Irish artists Celtic Thunder;
• Announced expansion of StageIt into the international market, with Hellmut Wolf joining as Director of International Artist Acquisitions;

Mr. Bair continued "The progress that we have made at StageIt has been slower than anticipated, and as a result, accounting rules required us to fully impair the goodwill and intangibles, and reverse the Earnout liability related to Stage It," Bair continued.  "As noted, this is for accounting purposes only.  We remain very optimistic about StageIt's future potential and believe that the former StageIt shareholders still have an opportunity to achieve their Earnout, particularly due to the commencement of our Metaverse project, as well as our aggressive expansion into other markets such as Europe, and recently Saudi Arabia.  Overall, we had a very productive year, with a lot of progress on all fronts. I am optimistic that 2023 will be even better, starting with the long-awaited Matchbox Twenty tour which begins next month."

About VNUE, Inc. (www.vnue.com)

VNUE, Inc. is a multi-faceted music technology company dedicated to monetizing the live music experience for artists, labels, writers, and publishers, with products such as its set.fm instant content distribution platform, exclusive license partner and "instant live" pioneer DiscLive (www.disclive.net), and protecting the rights of artists and writers with the company's Soundstr music recognition technology (MRT) (www.soundstr.com). VNUE also recently acquired StageIt (www.stageit.com), one of the oldest and most well-known ticketed live-streaming platforms.

The veteran entrepreneurs, artists, and songwriters behind VNUE, led by music and tech entrepreneur and recording artist Zach Bair (www.zachbairmusic.com), are passionate about the future of their industry and ensuring that rights holders' value is not lost amid always-changing technology.

Safe Harbor Statement

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate, "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations, or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results could differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures

This press release contains a non-GAAP financial measure. The Company believes that, in addition to other financial measures, "Adjusted Net Loss from Operations" is an appropriate indicator to assist in the evaluation of its operating performance on a period-to-period basis. "Adjusted Net Loss from Operations"  should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles.  

View original content:https://www.prnewswire.com/news-releases/vnue-reports-year-end-results-301800007.html

SOURCE VNUE, Inc.

FAQ

What were VNUE's financial results for the year ended December 31, 2022?

VNUE reported an operating loss of $22,973,109 for the year ended December 31, 2022.

How does VNUE's 2022 performance compare to 2021?

In 2021, VNUE had a net income of $2,920,382, a considerable decline from the 2022 operating loss.

What key milestones did VNUE achieve in 2022?

VNUE secured $1,500,000 in funding, partnered with Roblox, and launched the Soundstr platform.

What is the significance of the StageIt acquisition for VNUE?

The StageIt acquisition allows VNUE to expand its offerings and engage in metaverse concert projects.

What challenges did VNUE face in 2022?

VNUE faced an operating loss and goodwill impairment related to slower than anticipated progress at StageIt.