Welcome!

Wearables Authors: Pat Romanski, Shelly Palmer, Yeshim Deniz, Elizabeth White, Carmen Gonzalez

News Feed Item

CORRECTING and REPLACING Bitzio Reports Third Quarter 2012 Results

SAN FRANCISCO, CALIFORNIA -- (Marketwire) -- 11/19/12 -- This document corrects and replaces the press release that was issued on November 14, 2012 at 4:05 p.m. Eastern time. Bitzio's auditors identified a technical accounting correction in the application of the complex accounting rules for the company's convertible debenture issued in the third quarter of 2012. Therefore, the accounting change decreased the company's total liabilities by $125,000, increased stockholders' equity by $375,000 and increased non-cash interest expense by $250,000 in Q3 2012. The company apologizes for any inconvenience.

The corrected release reads:

Bitzio, Inc. (OTCQB:BTZO), a leading mobile media and app company, reported results for the third quarter ended September 30, 2012.

Q3 2012 Operational Highlights


--  Partnered with ROAR, a leading talent management company, to develop
    mobile apps for the world's most popular entertainment properties and
    talent, including actors, celebrities, musicians and athletes. 
--  Secured a licensing partnership with The NFL Players, a subsidiary of
    the National Football League Players Association (NFLPA), to jointly
    develop and market a football trivia app for the more than 180 million
    fans of the NFL. 
--  Bitzio's in-house software and animation studio advanced the development
    of "Pigskins Football Player Trivia Game," the first app to be produced
    from the new NFL Players partnership. The highly engaging app features
    the NFL's Top 50 players, along with in-app purchase options and social
    media features that enhance and expand game-play. The app is now set for
    release in December 2012, downloadable for free from Apple's App Store
    and the Android Marketplace. 
--  Strengthened the executive management team with the addition of Peter
    Henricsson as the company's new president and CEO. Prior to Bitzio,
    Henricsson was the founder, chairman and CEO of CellPoint, a European
    leader in location-based technologies for mobile operators. Under
    Henricsson's leadership, CellPoint listed on the NASDAQ Stock Market and
    achieved a market cap of $1 billion. 
--  Completed $598,000 convertible note financing to support the company's
    growth initiatives. An entity controlled by Henricsson contributed
    $300,000 to the raise. 
--  Divested the company's non-core Info-Products division, including the
    app developer training series, and thereby eliminating $667,000 in
    liabilities. The divestiture has allowed Bitzio to focus on developing
    and monetizing mobile apps for the sports and entertainment marketplace.

Management Commentary

"During the third quarter of 2012, we greatly improved our operational platform and set course on our new business model designed to tap the tremendous opportunities for mobile apps in the sports and entertainment markets," said Peter Henricsson, president and CEO of Bitzio. "In fact, we achieved several milestones in the quarter, including divesting non-core assets, strengthening our balance sheet and executive team, and forming major strategic partnerships.

"Our new license agreement with The NFL Players demonstrated our ability to secure the media rights of large, existing fan bases, as well as establish a co-marketing and revenue-sharing partnership that requires no up-front fees. We have been working closely with The NFL Players to develop the first app, which is now set to launch next month. Given their marketing support, we are confident the trivia app will be well received and widely downloaded by the millions of NFL fans across the country.

"Our partnership with The NFL Players also serves an ideal showcase of Bitzio's capabilities, and represents a springboard toward greater opportunities across a number of verticals, including other sports communities, entertainment properties and major consumer brands. We are now well positioned to capitalize on the tremendous opportunities in delivering apps to the fan-based communities of some of world's largest sports clubs and entertainment brands. We plan to leverage our deep industry relationships and marketing partnerships to secure new licensing agreements during the coming months, and roll out a number of new and highly-engaging mobile apps."

Q3 2012 Financial Summary

During the third quarter, Bitzio divested non-core assets and operations to focus on developing and monetizing fan-based apps in the sports and entertainment markets. The company generated nominal revenues from it legacy software and mobile applications in the third quarter, totaling $154,000 compared to marginal revenues in the same year-ago quarter.

Operating expenses in the third quarter of 2012 were $1.4 million, a significant improvement from $8.1 million in the same year-ago quarter. The year-over-year improvement was primarily due to a significant decrease in stock-based compensation, as well as a $2.3 million goodwill impairment charge recognized in Q3 2011.

Net loss from continuing operations in the third quarter of 2012 totaled $1.4 million or $(0.02) per share, as compared to a net loss of $8.1 million or $(0.22) per share in the same year-ago quarter.

Q3 2012 net loss included $1.9 million in non-cash items, comprised of $61,000 of amortization and depreciation, $558,000 related to losses on assets, $185,000 of derivative liability gain, $308,000 of amortization of debt discounts and $1.1 million of stock-based compensation. This compares to $2,000 of non-cash items in Q3 2011, which were comprised of $300 of amortization and depreciation and $1,500 of stock-based compensation.

Excluding these non-cash items, net loss before discontinued operations in Q3 2012 was $102,000 compared to $257,000 in the same year-ago period.

About Bitzio, Inc.

Founded in 2011, Bitzio is a leading mobile media and app development company focused on connecting fans of large entertainment and sports properties with the players, celebrities and teams they love. Powering these apps is the Bitzio Engine, which captures valuable user data and drives increased user monetization. What makes Bitzio really different is its approach to capturing users. Most app companies build first and hope the audience will come. Bitzio licenses media rights of sports and entertainment properties with millions of existing fans. Bitzio uses these rights to create mobile apps and web experiences for these existing fan bases. For more information, visit www.bitzio.com. To learn more about Bitzio, connect on Twitter (www.twitter.com/bitzio) and Facebook (www.facebook.com/bitzioinc).

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal," "commitment," "guidance," "expects," "would," "will," "continuing," "drive," "believes," "indicate," "look forward," "grow," "outlook," "forecasts," and similar terms and phrases are intended to identify these forward-looking statements.

Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


                                BITZIO, INC.                                
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                                            
                                               September 30,   December 31, 
                                                        2012           2011 
                                               --------------  -------------
                                                 (Unaudited)                
                    ASSETS                                                  
                                                                            
CURRENT ASSETS                                                              
  Cash                                        $      199,759  $     181,725 
  Accounts receivable, net                           138,397         92,232 
  Prepaid expenses and other current assets          138,677        337,508 
  Due from related parties                                 -        228,980 
  Prepaid acquisition costs                                -        713,150 
                                               --------------  -------------
                                                                            
    Total current assets                             476,833      1,553,595 
                                               --------------  -------------
                                                                            
OTHER ASSETS                                                                
  Property and equipment, net                         63,693              - 
  Intangible assets, net                             614,050        582,424 
  Goodwill                                           774,047        627,134 
                                               --------------  -------------
                                                                            
    Total other assets                             1,451,790      1,209,558 
                                               --------------  -------------
                                                                            
    TOTAL ASSETS                              $    1,928,623  $   2,763,153 
                                               --------------  -------------
                                               --------------  -------------
                                                                            
                    LIABILITIES AND STOCKHOLDERS' EQUITY                    
                                                                            
CURRENT LIABILITIES                                                         
  Accounts payable and accrued expenses       $      432,953  $     253,976 
  Deferred revenue                                         -         77,433 
  Notes payable, related parties                     351,870        426,870 
  Convertible notes, net of discount                 157,125         70,745 
  Derivative liability                               277,460              - 
                                               --------------  -------------
                                                                            
    TOTAL CURRENT LIABILITIES                      1,219,408        829,024 
                                               --------------  -------------
                                                                            
STOCKHOLDERS' EQUITY                                                        
  Preferred stock, $0.001 par value;                                        
   25,000,000 shares authorized; 5,343,120                                  
   and -0- shares issued and outstanding,                                   
   respectively                                        5,343              - 
  Common stock, $0.001 par value; 250,000,000                               
   shares authorized; 66,538,869 and                                        
   50,018,625 shares issued and outstanding,                                
   respectively                                       66,539         50,019 
  Stock subscriptions payable                              -        186,000 
  Additional paid-in capital                      19,521,586     11,800,050 
  Accumulated other comprehensive income              (1,998)             - 
  Accumulated deficit                            (18,882,255)   (10,101,940)
                                               --------------  -------------
                                                                            
    Total stockholders' equity                       709,215      1,934,129 
                                               --------------  -------------
                                                                            
      TOTAL LIABILITIES AND STOCKHOLDERS'                                   
       EQUITY                                 $    1,928,623  $   2,763,153 
                                               --------------  -------------
                                               --------------  -------------
                                                                            
                                                                            
                                                                            
                                BITZIO, INC.                                
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (Unaudited)                                 
                                                                            
                             For the Three Months       For the Nine Months 
                                            Ended                     Ended 
                                    September 30,             September 30, 
                          ------------------------  ------------------------
                                2012         2011         2012         2011 
                          -----------  -----------  -----------  -----------
                                                                            
REVENUES                 $   154,384  $     3,104  $   519,591  $     3,104 
                                                                            
OPERATING EXPENSES                                                          
                                                                            
  Professional fees        1,296,105       43,294    3,329,505       62,422 
  Executive compensation           -    1,141,576      127,500    1,141,576 
  General and                                                               
   administrative            120,593    4,568,268      418,151    4,591,474 
  Impairment of goodwill           -    2,350,800    3,981,508    2,350,800 
                          -----------  -----------  -----------  -----------
    Total Operating                                                         
     Expenses              1,416,698    8,103,938    7,856,664    8,146,272 
                          -----------  -----------  -----------  -----------
                                                                            
LOSS FROM OPERATIONS      (1,262,314)  (8,100,834)  (7,337,073)  (8,143,168)
                          -----------  -----------  -----------  -----------
                                                                            
OTHER EXPENSES                                                              
  Finance costs and                                                         
   amortization             (320,983)        (500)    (478,837)        (746)
  Gain on derivative                                                        
   liability                 185,118            -      185,118            - 
                          -----------  -----------  -----------  -----------
                                                                            
    Total Other Expenses    (135,865)        (500)    (293,719)        (746)
                          -----------  -----------  -----------  -----------
                                                                            
LOSS BEFORE INCOME TAXES  (1,398,179)  (8,101,334)  (7,630,792)  (8,143,914)
PROVISION FOR INCOME                                                        
 TAXES                             -            -            -            - 
                          -----------  -----------  -----------  -----------
                                                                            
NET LOSS FROM CONTINUING                                                    
 OPERATIONS              $(1,398,179) $(8,101,334) $(7,630,792) $(8,143,914)
                                                                            
  Loss from discontinued                                                    
   operations               (150,681)           -     (591,236)           - 
  Loss on disposal of                                                       
   subsidiary               (558,287)           -     (558,287)           - 
                                                                            
  Loss from Discontinued                                                    
   Operations, net of                                                       
   income taxes             (708,968)           -   (1,149,523)           - 
                                                                            
NET LOSS                 $(2,107,147) $(8,101,334) $(8,780,315) $(8,143,914)
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------
                                                                            
BASIC AND DILUTED LOSS                                                      
 PER SHARE FROM                                                             
 CONTINUING OPERATIONS   $     (0.02) $     (0.22) $     (0.13) $     (0.24)
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------
                                                                            
BASIC AND DILUTED LOSS                                                      
 PER SHARE FROM                                                             
 DISCONTINUED OPERATIONS $     (0.01) $         -  $     (0.02) $         - 
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------
                                                                            
BASIC AND DILUTED                                                           
 WEIGHTED AVERAGE NUMBER                                                    
 OF SHARES OUTSTANDING    62,441,151   37,557,473   57,152,841   34,566,071 
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------

Contacts:
Investor Relations:
Liolios Group, Inc.
Matt Glover or Michael Koehler
(949) 574-3860
BTZO@liolios.com

Media Relations:
Innova Communications
Amy Chilla
(949) 573-7830
achilla@teaminnova.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.