NEW YORK, NY and ATLANTA, GA, Aug. 9, 2012 (GLOBE NEWSWIRE) -- Remark Media, Inc. (Nasdaq: MARK), a global digital media company, today reported financial results for its second quarter ended June 30, 2012.
"In 2012, Remark Media is focused on accelerating growth by transitioning from a service model to owning and operating digital brands. This strategic decision will help position Remark Media as a leading digital media company and will provide the potential to generate new revenue streams," said Carrie Ferman, CEO of Remark Media. "The current financials reflect a company in transition and actively investing in assets that will create a diverse portfolio of websites in personal finance--the hub of which will be DimeSpring.com."
FINANCIAL RESULTS· Revenue for the second quarter was $33,000, a slight increase over the first quarter due to consolidation of several days of Banks.com revenues. Revenue was down from $1.3 million in the prior year period, primarily due to the end of the service agreements with Sharecare and Discovery and a shift in the strategic direction of the company. · Operating expenses decreased 27% to $1.6 million compared to $2.2 million in the prior year period. · Net loss was $(2.2) million or $(0.34) per share compared to a net loss of $(1.0) million or $(0.19) per share in the prior year period. · Cash balance as of June 30, 2012 stood at $2.3 million compared to $3.0 million on June 30, 2011. Balance Sheet Highlights. With the Banks.com merger completed, Remark Media's total assets increased to $8.9 million as of June 30, 2012 compared to $3.7 million at December 31, 2011. The book value of our investment in Sharecare increased to $1.6 million as of June 30, 2012 compared to $0.9 million at December 31, 2011. Operating Highlights. DimeSpring.com is expected to transition from beta to full consumer launch in early September accompanied by an advertising launch campaign. Remark Media is also on track to re-launch Banks.com in September, an asset that has the potential to drive significant value. Future focus will be on redevelopment IRS.com and FileLater.com. In addition, in the second quarter Remark Media added key employees to its management team in the areas of product, editorial, marketing, and sales. Sharecare Highlights. During the quarter ending June 30, Sharecare generated $8.2 million in revenues compared to $2.9 million in the prior year period, representing 181% growth. As of June 30, Remark Media owned approximately 10.9% of the outstanding common stock of Sharecare. MERGER TRANSACTION On June 28, 2012, Remark Media, Inc. completed the merger contemplated by the Agreement and Plan of Merger dated as of February 26, 2012, among Remark Media and Banks.com Inc. At the effective time of the Merger, each share of the outstanding common stock of Banks.com was converted into the right to receive 0.0258 shares of Remark Media common stock, for an aggregate of 671,332 shares of Remark Media common stock. The outstanding shares of Banks.com preferred stock, including all accrued and unpaid dividends as of the date of closing of the Merger on such preferred stock, a Note and a Warrant, all of which were held by Daniel M. O'Donnell, former President and Chief Executive Officer of Banks.com, and his affiliates, were converted into cash in the aggregate amount of $300,000 and the right to receive 31,452 shares of Remark Media common stock. In connection with the Merger, Banks.com issued an Amended and Restated Promissory Note in the principal amount of $125,000 to Mr. O'Donnell and his wife; the Note was settled on the effective date of the merger.
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