Penny Machine
11 years ago
News Out - July 15, 2013
Dear Shareholders,
I am pleased to share with you our third quarter unaudited results to end May 31, 2013 for the current fiscal year to end August 2013.
Revenue for the first nine months of fiscal 2013 was approximately $2,622,000 as compared to approximately $2,524,000 for the first nine months of our prior fiscal year, an increase of $98,000, or 4%. The loss for the nine months ended May 31, 2013 was $868,000 as compared to the prior year comparable period loss of $1,644,000, an improvement of $776,000, or 47%, due to a decrease of approximately $427,000 in salaries and benefits expense and approximately $138,000 in technical and processing expense.
Revenue for the fiscal quarter ended May 31, 2013 was approximately $833,000 as compared to approximately $877,000 for the prior quarter ended February 28, 2013, a decrease of $44,000, or 5%. The loss for the fiscal quarter ended May 31, 2013 was approximately $256,000 as compared to approximately $218,000 for the prior quarter ended February 28, 2013, an increase of $38,000, or 17%.
We have recently renewed our Sponsor Bank Agreement with Mercantile Bank and, in having Nedbank as our Sponsor Bank for our General Purpose Reloadable cards (“GPR”); we have secured this essential support enabling us to offer the full range of prepaid debit cards in the South African market. With completion of our own new platform at the end of this month we are in a stronger position to continue to expand our card business in the market.
New initiatives in marketing and product development are currently being implemented with a focus on attracting new customers, whilst satisfying our existing customers’ demands for new and improved product features.
Very truly yours,
Raymond Goldsmith
Chairman & CEO
T + 1 678 805 2500
F + 1 678 805 2501
Penny Machine
11 years ago
April 18, 2013
Dear Shareholders,
I am pleased to share with you our second quarter unaudited results to end February 28, 2013 for the current fiscal year to end August 2013.
The loss for the first half of fiscal 2013 was $588,000 as compared to the prior year comparable period loss, which was $1,090,000, an improvement of $502,000, or 46%. Revenue for the first half of fiscal 2013 was approximately $1,790,000 as compared to approximately $1,658,000 for the first half of our prior fiscal year, an increase of $132,000, or 8%.
The loss for the fiscal quarter ended February 28, 2013 was approximately $218,000 as compared to approximately $370,000 for the prior quarter ended November 30, 2012, an improvement of $152,000, or 41%. Revenue for the fiscal quarter ended February 28, 2013 was approximately $877,000 as compared to approximately $914,000 for the prior quarter ended November 30, 2012, a decrease of $37,000, or 4%, due to the traditionally quieter months of January and February.
We have recently renewed our Sponsor Bank Agreement with Mercantile Bank and, in having Nedbank as our Sponsor Bank for our General Purpose Reloadable cards (“GPR”), we have secured this essential support enabling us to offer the full range of prepaid debit cards in the South African market. With completion of our own new platform at the end of this month we are in a stronger position to continue to expand our card business in the market.
Very truly yours,
Raymond Goldsmith
Chairman & CEO
T + 1 678 805 2500
F + 1 678 805 2501
http://www.fnds3000.com/investor-center/press-releases/
beerthirty
13 years ago
FNDS3000 Corp Announces Fiscal 2011 Third Quarter Results
Thursday 21 July 2011
FNDS3000 Corp (OTCQB: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced its financial results for the third fiscal quarter and nine months ended May 31, 2011.
THIRD QUARTER HIGHLIGHTS:
•We project that over $107 million will be loaded onto our prepaid cards over the next 12 months based on the third quarter results.
•We have upped our projected annualized revenue run-rate to $3.21 million based on our June 2011 revenue.
•Record revenues for the third quarter of 2011 were $695,000, up from $110,000 in the prior year's third quarter.
•Net loss for the quarter was $572,000 or $0.01 per share, compared to a net loss of $1,050,000, or $0.02 per share, in the prior year's third quarter.
For the quarter ended May 31, 2011, revenues were $695,300, an increase of $585,026 (or 530.5%) from $110,274 for the third quarter of fiscal 2010. The net loss for the quarter was $(572,214) or ($0.01) per share, a decrease of $477,918 (or 45.5%) from $(1,050,132) or ($0.02) per share for the same period in the prior year.
For the nine months ended May 31, 2011, revenues were $1,605,930, an increase of $1,328,547 (or 479.0%) from $277,383 for the nine months ended May 31, 2010. The net loss for the nine months ended May 31, 2011 was $(2,416,262) or ($0.03) per share, a decrease of $879,531 (or 26.7%) from $(3,295,793) or ($0.07) per share for the same period in the prior year.
The Company's Chairman, President and CEO, Raymond L. Goldsmith stated, "Favorable business momentum continued in the fiscal third quarter as we pursue profitability and a cash flow positive position. We have generated double-digit revenue growth for the seventh consecutive quarter and our bottom line has improved over the past two quarters by approximately $482,000 as we continue to implement direct local sales initiatives in South Africa as part of our plan to migrate away from our initial distributor sales model. We also continue to benefit from the transformation of our corporate leadership team at the end of September 2010 that has served to streamline our internal lines of communication and will have reduced non-South African corporate overhead expenses by approximately $1,000,000 by our year-end August 31. The continuing upward trend of our business can be illustrated by the two charts below.
(Photo: http://photos.prnewswire.com/prnh/20110721/FL38752-a )
"The South African rands loaded chart gives an indication of future revenue based on the premise that the more rands loaded onto the cards, the more revenue that should be generated. The volume of South African rands (ZAR) loaded onto our prepaid cards jumped 712% to approximately ZAR 184.6 million (approximately $26.8 million in U.S. dollars) over the same quarter last year and 32% over our second fiscal quarter of 2011.
(Photo: http://photos.prnewswire.com/prnh/20110721/FL38752-b )
"We are pleased to report that we continue to maintain no debt on our balance sheet. In the third quarter, the Company raised an additional $1 million and our need to secure additional funds to cover operational expenses continues to decrease each quarter as we work towards positive cash flow. We cannot provide a guarantee that we will successfully close any required financing or that such financing, if closed, will be on reasonable terms. However, with approximately $16 million previously raised, we are cautiously optimistic that we will obtain the necessary funding required to grow the Company."
Goldsmith concluded, "Looking ahead, based on current business trends, we anticipate that both revenues generated and rands loaded onto our prepaid card platform will continue to increase in our fourth fiscal quarter. We will focus on expanding gross margins, improving working capital usage and operational efficiencies, meeting increased demand and enhancing our prepaid card processing platform."
Detailed information on the financial results for the fiscal third quarter and the nine months ended May 31, 2011 is included in the Company's quarterly report on Form 10-Q, which was filed with the Securities and Exchange Commission on July 15, 2011.
beerthirty
13 years ago
FNDS3000 Corp Closes on Final Tranche of $2.5 Million Equity Financing Agreement
Wednesday 18 May 2011
FNDS3000 Corp (OTCQB: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced that it has closed on a $500,000 private placement, which represented the fourth and final tranche of the $2.5 million, non-brokered equity financing agreement entered into in October 2010.
The $500,000 financing was led by Sherington Holdings, LLC, a private investment company, whose Chairman and CEO, Raymond Goldsmith, is also Chairman and CEO of FNDS3000.
Pursuant to the terms defined in the agreement, the financing was valued at the average closing market price of the Company's common stock for the ten trading days prior to the closing date. FNDS3000 will issue 3,333,334 shares of restricted common stock priced at $0.15 per share. In addition, for each common share purchased, the investor received a two-year warrant to buy one share of common stock at an exercise price 200% of the offering price equaling $0.30 per share.
Joe McGuire, CFO of FNDS3000 noted, "We are extremely pleased to announce the successful culmination of this capital raise. Today's financing was executed at our current market value and keeps our balance sheet free from any long-term debt. The $500,000 financing supports our focus to build our prepaid business, increase our revenues and ultimately achieve positive cash flow from our operations. As previously stated, there will be a need to secure additional funds to cover operational expenses as we work towards positive cash flow and we cannot today provide any guarantee that we will successfully close such financing or that such financing, if closed, will be on reasonable terms. However, with over $15 million previously raised, we are cautiously optimistic that we will obtain the necessary funding required to grow the Company."
The Company has offered and sold and will offer and sell the Common Stock and Warrants in the above noted financings to qualified accredited investors in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, and have not been registered under the Securities Act or any state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. For more detailed information relating to this matter, please refer to the Company's Form 8-K filed with the U.S. Securities and Exchange Commission later today.
beerthirty
13 years ago
FNDS3000 Corp Announces Fiscal 2011 Second Quarter Results
FNDS3000 Corp (OTCQB: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced its financial results and an operational update for the second fiscal quarter and six months ended February 28, 2011.
For the quarter ended February 28, 2011, revenues were $545,951, an increase of $456,537 (or 510.6%) from $89,414 for the second quarter of fiscal 2010. The net loss for the quarter was $(789,830) or ($0.01) per share, a decrease of $316,171 (or 28.6%) from $(1,106,001) or ($0.02) per share for the same period in the prior year.
For the six months ended February 28, 2011, revenues were $910,630, an increase of $743,521 (or 444.9%) from $167,109 for the six months ended February 28, 2010. The net loss for the six months ended February 28, 2011 was $(1,844,049) or ($0.02) per share, a decrease of $401,612 (or 17.9%) from $(2,245,661) or ($0.05) per share for the same period in the prior year.
The Company's Chairman, President and CEO, Raymond L. Goldsmith stated the following, "It is my pleasure to share with you an operational update and to summarize the progress that I witnessed on my recent visit to our South African prepaid operations. In today's update, I will detail FNDS3000's progress over the last several months since I assumed responsibility as CEO and President. In addition, I will discuss key business objectives that we are focusing on for the remainder of 2011.
FNDS3000 RECENT PROGRESS
"Reviewing our structure, both internally and externally, has been my highest priority since assuming the post of CEO this past fall. The transformation of our corporate leadership team at the end of September 2010 has served to greatly streamline our internal lines of communications, significantly reduce non-South African corporate overhead expenses, and empowered our management team in South Africa to mobilize resources more quickly and to respond to our customer needs more effectively. Since October, we have eliminated approximately $1 million from previously planned operating costs outside of South Africa, whilst deploying those funds to focus on increasing revenue in South Africa. There is no question that the Company is now on a more solid foundation and our business continues to grow each month.
"We are pleased with our financial results and the key drivers of our business in the early stages of our operations. The main message that permeates from our South African team is a continuing upward trend in all aspects of our operations as can be illustrated by the following two charts.
"Record revenue of approximately $546,000 was generated in the fiscal quarter ending February 28, 2011, which was a 511% increase over the prior year's second quarter and a 50% increase over our first fiscal quarter of 2011. The information in the Revenue chart drives home the early success of the basic business model of our Company. We started with prepaid payroll cards in South Africa as we projected that this would be a great core business to begin with as we expected it to provide a predictable, recurring revenue stream. Our overall revenue, utilizing our fiscal second quarter ended February 28, 2011 as a base, is now on an annualized revenue run rate of $2.14 million.
(Photo: http://photos.prnewswire.com/prnh/20110418/FL85007-a )
"The South African Rands Loaded chart gives us a good indication of future revenue based on the premise that the more Rands loaded onto the cards, the more revenue that should be generated. The volume of South African Rands (ZAR) loaded onto our prepaid cards jumped 950% to approximately ZAR 140.3 million (approximately $20.4 million in U.S. dollars) over the same quarter last year and 55% over our first fiscal quarter of 2011.
(Photo: http://photos.prnewswire.com/prnh/20110418/FL85007-b )
"We have seen strong growth in the number of prepaid cards. As of February 28, 2011, FNDS3000 had issued and activated a total of 54,400 cards, of which 25,700 were revenue producing. We are also pleased to report that we anticipated that as customer card utilization matures, the margin trends would increase, and to date, that has been confirmed.
2011 OBJECTIVES
"For the remainder of calendar 2011, we will focus on several key business objectives to achieve a positive cash flow and further growth. We are currently engaged in:
implementing direct local sales initiatives in South Africa to attract new customers for our prepaid card programs, as we migrate away from our initial distributor sales model;
adding another worldwide retail electronic payment network to our prepaid processing platform and another banking facility;
enhancing the functionality of our prepaid processing platform to provide for greater control, flexibility, productivity and scalability of our South African operations; and
exploring other emerging prepaid markets.
"We will expand and report on these objectives in our upcoming news releases and quarterly reports."
SUMMARY
Goldsmith summarized by stating, "Data relating to a growing number of emerging prepaid markets show demand from the private and public sectors is indeed accelerating. The progress we continue to make on all fronts reinforces my belief that FNDS3000 now has strong underlying value and can be built into a growing, profitable company. We have built a solid foundation and the entire management team is very focused, committed and positive about the future, and we are finally seeing a true picture of where the business is going.
"There will be a need to secure additional funds to cover operational expenses as we work towards positive cash flow and we cannot today provide any guarantee that we will successfully close such financing or that such financing, if closed, will be on reasonable terms. However, with $15 million previously raised, we are cautiously optimistic that we will obtain the necessary funding required to grow the Company.
"In closing, I want to thank our employees for their dedication and hard work; our customers and partners for their confidence in us; and finally, our shareholders for their support as we enter into what we believe to be an exciting, new era for FNDS3000 Corp."
Detailed information on the financial results for the fiscal second quarter and the six months ended February 28, 2011 was included in the Company's quarterly report on Form 10-Q, which was filed with the Securities and Exchange Commission on April 14, 2011.
About FNDS3000 Corp
Headquartered in the U.S. with operations in South Africa, FNDS3000 Corp is engaged in executing a series of international growth initiatives designed to position the Company as a major player in the world's fastest growing payment card segment: prepaid cards. Given that 40% of the adult population in South Africa is currently unbanked or underbanked, FNDS3000's initial focus has concentrated on offering tailored prepaid card programs and services to business customers in this developing prepaid market, including network branded and closed loop programs that support employee payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfer of funds. The Company provides these programs and services through a proven, proprietary U.S. processing platform that has been designed for international and cross border capability. For more information, please visit www.FNDS3000.com, or follow us on Twitter @_FNDS3000.
Forward Looking Statements
Matters discussed in this press release contain forward-looking statements. Investors are cautioned that such forward looking statements involve risk and uncertainties, which could significantly impact the actual results, performance, or achievements of the Company. Such risks and uncertainties include, but are not limited to, the potential loss of our relationships with each of the parties that sponsor our cards and banks that manufacture, issue, and own the cards; the loss of our service providers; security breaches of our electronic information; the inability to raise sufficient capital to fund its operations; and other risks as may be detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise its forward looking statements even if experience or future events make it clear that any of the projected results expressed or implied herein will not be realized.
SOURCE FNDS3000 Corp
beerthirty
13 years ago
FNDS3000 Corp Closes on Third Tranche of $2.5 Million Equity Financing Agreement
FNDS3000 Corp (OTCQB: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced that it has closed on a $500,000 private placement, which represented the third scheduled tranche of the $2.5 million, non-brokered equity financing agreement entered into in October 2010.
This financing was led by Sherington Holdings, LLC, a private investment company, whose Chairman and CEO, Raymond Goldsmith, is also Chairman and CEO of FNDS3000. When coupled with the related financings completed in October 2010 and January 2011, this financing brings the total amount of capital received to date under the October commitment agreement to $2 million. The final tranche of $500,000 is expected to be closed on or before July 1, 2011. Proceeds from the private placements are intended to be used as working capital to support continued growth of FNDS3000's South African prepaid card business.
Pursuant to the terms defined in the agreement, the $500,000 financing was valued at the average closing market price of the Company's common stock for the ten trading days prior to the closing date. FNDS3000 will issue 3,597,122 shares of restricted common stock priced at $0.139 per share. In addition, for each common share purchased, the investors received a two-year warrant to buy one share of common stock at an exercise price 200% of the offering price equaling $0.278 per share.
Joe McGuire, CFO of FNDS3000 noted, "Today's $500,000 financing, executed at the current market value, supports and accelerates the ongoing roll-out of our prepaid card solutions in South Africa. Our team in South Africa continues to issue and activate thousands of prepaid cards for new cardholders every month, confirming that our growth strategy remains firmly on the mark, as we persist in our efforts to build our prepaid business, increase our revenues and ultimately achieve positive cash flow from our operations."
The Company has offered and sold and will offer and sell the Common Stock and Warrants in the above noted financings to qualified accredited investors in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, and have not been registered under the Securities Act or any state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
timhyma
13 years ago
FDTC 10-Q is out:
As of January 14, 2011, the Company had outstanding 75,387,591 shares of its common stock. Looks like they issues about 6.5mil shares since August.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7658603-1038-174014&type=sect&dcn=0001193125-11-008398
Tangable book is around .02
Looks like they lost a penny on the quarter. Most that loss is due to three things:
Processing, technical and financial expense
Salaries and benefits expense
Professional and consultant expense
82% of the operating expenses right there- they need to get that under control asap, imo.
I sure hope they are done with Dodak and Fann for good- they sucked the blood out of this compeny, imo:
Note 10 – Related Party Transactions
Consulting Fees
As a condition of the October 2008 Sherington Agreement closing, Michael Dodak and David Fann, former executive officers and directors, agreed that their employment agreements would be converted to Consulting Agreements.
On November 2, 2010, the Company entered into an Agreement and Release with Michael Dodak (the “Dodak Release”), a former director and executive officer of the Company and an existing shareholder of the Company, relating to Mr. Dodak’s contractual relationship with the Company. In accordance with the terms and conditions set forth in the Dodak Release, Mr. Dodak, in consideration for providing the Company with a full release, has agreed to accept:
• $30,000 in cash;
• 142,857 shares of the Company’s common stock, valued at $25,000 to be issued on January 4, 2011;
• shares of common stock of the Company valued at $25,000 to be issued between January 14, 2011 and February 28, 2011 with the number of shares to be calculated based on the lesser of $0.175 or the average trading price of the Company’s shares of common stock for the ten trading days prior to the date of the issuance;
• shares of common stock of the Company valued at $25,000 to be issued between April 1, 2011 and May 16, 2011 with the number of shares to be calculated based on the lesser of $0.175 or the average trading price of the Company’s shares of common stock for the ten trading days prior to the date of the issuance; and
• shares of common stock of the Company valued at $25,000 to be issued between July 1, 2011 and August 15, 2011 with the number of shares to be calculated based on the lesser of $0.175 or the average trading price of the Company’s shares of common stock for the ten trading days prior to the date of the issuance.
The Company is required to register the shares of common stock issued to Mr. Dodak on a Form S-8 Registration Statement within 45 days of the effective date of the Dodak Release, which is seven days after the execution of the Dodak Release. The Company filed a Form S-8 registration in December. Refer to Note 14 – Subsequent Events.
On November 2, 2010, the Company also entered into an Agreement and Release with David Fann (the “Fann Release”), a former officer and director of the Company and an existing shareholder of the Company relating to Mr. Fann’s contractual relationship with the Company. In accordance with the terms and conditions set forth in the Fann Release, Mr. Fann, in consideration of a full release, has agreed to accept:
• $30,000 in cash; and
• 571,429 shares of the Company’s common stock, valued at $100,000, to be issued within five business days of a Form S-8 Registration Statement being declared effective but in no event later than December 20, 2010.
The Company is required to register the shares of common stock issued to Mr. Fann on a Form S-8 Registration Statement within 45 days of the effective date of the Fann Release, which is seven days after the execution of the Fann Release.
As a result of the Settlement Agreements with Messrs. Dodak and Fann, and having paid the $60,000 cash payments as per the Agreements, the Company has recognized $200,000 of equity-based consulting expense and reduced the related combined liability reflected on its balance sheet of $301,000 to $200,000. Additionally, a non-cash discount expense of $6,400 was recognized due to the average closing price of our common stock for the ten days prior to and including November 30, 2010 of $0.19 as compared to a maximum value of $0.175 be utilized when calculating the remaining shares to be issued to Mr. Dodak. The Company will utilize the cash savings of $241,000 in connection with other working capital purposes.
Sales of Unregistered Common Stock
On October 19, 2010, the Company entered into a private placement subscription agreement (the “Sherington October 2010 Subscription Agreement”) with Sherington Holdings, LLC pursuant to which Sherington purchased 5,638,890 shares of Common Stock (the “Sherington October 2010 Shares”) at a purchase price of $0.175 per share and a warrant to purchase 5,638,890 shares of Common Stock (the “Sherington October 2010 Warrant”) for gross proceeds of $986,806.
Additionally, on October 19, 2010, the Company entered into a private placement subscription agreement (the “October 2010 Subscription Agreement”) with accredited investors (the “October 2010 Investors”) pursuant to which the October 2010 Investors purchased, in the aggregate, 75,396 shares (the “Purchased Shares”) of the Company’s Common Stock at a purchase price of $0.175 per share and a warrant, to purchase, in the aggregate, 75,396 shares of Common Stock (the “October 2010 Warrant”) for aggregate gross proceeds of $13,194. The October 2010 Investors included Raymond Goldsmith, our Chairman and Chief Executive Officer.
Details of the sale are more fully described in Note 13 – Equity Transactions.
Other Agreements
In conjunction with the October 2010 sale of stock to Sherington, the Company issued to Sherington a Fifth Amended and Restated Warrant (the “Fifth Warrant”); amending the number of shares that Sherington is entitled to from 12,412,427 shares to 9,254,360 shares and recognizing an increased fully-diluted interest in the Company from 49.98% to 55.21%. The Fifth Warrant provides that Sherington is entitled to purchase from the Company an aggregate of 9,254,360 shares of Common Stock of the Company at a price equal to $0.175 per share through December 31, 2013. Notwithstanding the foregoing, the Fifth Warrant shall only be exercisable so that Sherington may maintain its fully-diluted percentage interest in the Company of 55.21% and is only exercisable by Sherington if and when there has occurred a full or partial exercise of any derivative securities of the Company outstanding as of July 1, 2009 (but excluding the securities held by Sherington), the 4,000,000 warrants issued to Bank Julius Baer & Co. Ltd. and the 1,000,000 warrants issued to Mr. Besuchet. The exercise price of the Fifth Warrant is subject to full ratchet and anti-dilution adjustment for subsequent lower price issuances by the Company, as well as customary adjustments, provisions for stock splits, stock dividends, recapitalizations and the like.
Contemporaneously with the execution and delivery of the Sherington October 2010 Subscription Agreement, the Company and Sherington entered into Amendment No. 6 to the Registration Rights Agreement dated January 6, 2009 (the “Sixth Amendment”) whereby the Company expanded the definition of Shares (as defined in the Sixth Amendment) to include, among other things, the Sherington October 2010 Shares and the shares issuable upon the exercise of the Sherington October 2010 Warrant.
Furthermore, with the execution and delivery of the Sherington October 2010 Subscription Agreement, the Company and Sherington entered into a Commitment Agreement (the “Commitment Agreement”) dated October 19, 2010. Pursuant to the Commitment Agreement, the Company agreed to sell and Sherington agreed to commit to purchase a prescribed pro rata portion of Common Stock of the Company in a private placement. The Company plans to offer shares of the Company’s Common Stock in four tranches, the first tranche (“Tranche 1”) closed on October 19, 2010 and three additional tranches to generate proceeds of $500,000 each are to close in January 2011, April 2011 and July 2011. In addition, in the event that the aggregate funds received from accepted subscriptions of any tranche is less than the applicable tranche cap, Sherington agreed to purchase shares in an aggregate principal amount equal to, and for an aggregate purchase price of, Sherington’s call amount, as defined in the Commitment Agreement.
When you figure in all the other warrants and such- potenially o/s count could be 122mil. The authorized is 150mil, so they better be profitable this year, or sell the company, imo.
beerthirty
13 years ago
FNDS3000 Corp Announces Fiscal Year 2010 Results
Fnds3000 (BB) (OTCBB:FDTC)
Key Highlights for Fiscal Year 2010 Compared to Fiscal Year 2009
Revenue climbed 444% from $88,981 to $484,119.
Gross profit margin on sales improved, rising from 24% to 39%.
After factoring non-cash expenses of $1,359,555, the net loss totaled $4,527,840, or $0.10 loss per basic and diluted share. This compared to a net loss in the previous year of $5,677,725, or $0.17 loss per basic and diluted share, after accounting for $2,124,350 in total non-cash expenses.
As of August 31, 2010, cash and accounts receivable stood at $399,933; total assets were $1,869,089; total current liabilities were $490,058; there was no long-term debt; and stockholders' equity was $1,379,031.
Operational Highlights for Fiscal Year 2010
In December 2009, the Company concluded the Market Test Phase and commenced the Production Rollout of its South African prepaid card programs.
The number of prepaid cards issued and activated increased from 2,200 Market Test cards as of the end August 2009 to approximately 23,700 as of August 31, 2010; and has subsequently climbed to approximately 35,000 issued and activated cards as of the end of November 2010.
During the fiscal year, Rands loaded onto prepaid cards increased from 2.27 million per month to 23.01 million per month.
Although a majority of the Company's revenue during Fiscal Year 2010 stemmed from cards issued and activated under its prepaid payroll program, FNDS3000 also benefited from initial traction achieved through early adoption of its prepaid microfinance card program now being offered to micro-lending institutions in South Africa.
Recent Developments
On October 6, 2010, FNDS3000 announced the implementation of several strategic reorganizational initiatives specifically aimed at streamlining its senior management structure, reducing corporate overhead expenses and strengthening its South African business operations, which included:
the reduction of the number of Board members from nine to five;
the expansion of Chairman Raymond Goldsmith's leadership role to include the posts of President and Chief Executive Officer; and
freeing up of approximately $1 million in cash and working capital through corporate staff reductions and related corporate cost-cutting programs.
Later that same month, the Company announced the signing of a $2.5 million, non-brokered equity financing agreement that will be closed in four tranches over a nine-month period. On October 19, 2010, FNDS3000 closed on the first of the four tranches, receiving net proceeds of $1,000,000. The follow-on financings, equal to $500,000 each, are scheduled to occur on or about January 31, 2011; April 1, 2011 and July 1, 2011.
Commenting on the results, Goldsmith noted, "While the Company faced its share of tough times over the past year, we succeeded in launching the Production Rollout of our prepaid card programs, secured financing for the Company and made a point of maintaining a high level of transparency with the investing public. The recent steps we've taken to strengthen fundamental aspects of our working capital position and operating platform have allowed us to define an executable plan in South Africa with financial goals and operational objectives that are both realistic and attainable in fiscal 2011. More specifically, our key goals and objectives include:
Implementing local marketing initiatives in South Africa to promote major new customer wins for our prepaid payroll, microfinance and benefits card programs, and in the process drive notable revenue growth;
Further enhancing the functionality of our prepaid processing platform;
Identifying other emerging prepaid markets in the international arena to pursue smart expansion opportunities; and
Attaining positive cash flow in our South African business operations."
"As we proceed with our plan, FNDS3000 shareholders can expect that our management team will be dedicated to our growth and the value-driven results we are working to achieve so that our performance can be properly judged ... and rewarded," concluded Goldsmith.
For more detailed information on the fiscal 2010 results, please refer to the Company's 10-K filed with the U.S. Securities and Exchange Commission yesterday afternoon. To access the report, go to www.sec.gov.
About FNDS3000 Corp
Headquartered in the U.S. with operations in South Africa, FNDS3000 Corp is engaged in executing a series of international growth initiatives designed to position the Company as a major player in the world's fastest growing payment card segment: prepaid cards. Given that 40% of the adult population in South Africa is currently unbanked or underbanked, FNDS3000's initial focus has concentrated on offering tailored prepaid card programs and services to business customers in this developing prepaid market, including network branded and closed loop programs that support employee payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfer of funds. The Company provides these programs and services through a proven, proprietary U.S. processing platform that has been designed for international and cross border capability. For more information, please visit www.FNDS3000.com, or follow us on Twitter @_FNDS3000.
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