- The Company reported positive cash flow of $32,394 for the nine months ended September 30, 2016; the Company had negative cash flow of $30,517 for the year ended December 31, 2015.
- Cash generated from operations was $984,760 for the first nine months of September 30, 2016, and $486,262 for the year ended December 31, 2015.
- The Company reported operating profit of $690,482 for the nine months ended September 30, 2016; the Company had an operating loss of $221,109 for the year ended December 31, 2015.
- The Company's cash and cash equivalents increased to $166,968 at September 30, 2016, compared to $134,574 at December 31, 2015.
Over the past several months, Prime continued to improve operations through the eviction and replacement of certain legacy non-paying tenants and also improved the Company's cash position through the successful recovery of unpaid rent from those and other legacy tenants. During the quarter, the Company delivered its highest revenue run rate since inception.
|Real Estate Portfolio Summary|
|Property Name/Location||Type||Approx. Gross Leasable Area (in sq. meters)||Purchase Price on 9/30/2013 ($ in millions)||Tenant||Average Lease Duration (Years)|
|1||Corso Europa 22, Milano||Office||560||$8.57||Italian firms||10|
|2||Milanofiori, Building A5||Office||865||$3.13||Various int'l and Italian firms||10|
|3||Milanofiori, Building Q7||Office||586||$1.27||Various int'l and Italian firms||10|
|4||Milanofiori, Building N||Office||1,750||$4.48||Various int'l and Italian firms||10|
|5||Viale Lucania, Buccinasco||Office, Industrial||16,230||$22.27||Microelettrica Scientifica||18|
|6||Via Buozzi 22, Buccinasco||Office||545||$1.85||Various int'l and Italian firms||10|
|7||Via Lazio 95, Buccinasco||Office, Warehouse||4,320||$5.01||Italian firms||10|
|8||Via Emilia, Buccinasco||Commercial||200||$0.35||Italian commercial co.||10|
|9||Via Mulino, Buccinasco||Commercial||360||$1.37||Merkur||8|
|10||Milanofiori, Building Q5||Office||400||$1.26||Italian firms||10|
Income Statement Highlights
|9 months ended September 30, 2016 (unaudited)||12 months ended December 31, 2015 (unaudited)|
|Total operating expenses||(1,800,095)||(3,257,307)|
|Operating profit (loss)||690,482||(221,108)|
|Profit (loss) before tax||(2,037,806)||(7,585,983)|
|Profit (loss) from continuing operations||(2,151,958)||(7,256,549)|
|Profit (loss) from discontinued operations||(0)||(305,137)|
Total operating expenses were $1.8 million for the nine months ended September 30, 2016. Total operating expenses were $3.2 million for the year ended December 31, 2015. The reduction in operating expenses is primarily due to a decrease in finance costs related to the non-cash fair value adjustment on certain derivative financial liabilities.For the nine months ended September 30, 2016, the Company reported a net loss of $2.2 million. Net loss was $7.5 million for the year ended December 31, 2015. Balance Sheet Highlights As of September 30, 2016, Prime had total non-current assets of $38.7 million; trade and other receivables, net of allowance for bad debts, of $847,127; and cash and cash equivalents of $166,968, compared to $37.4 million, $842,878, and $134,574, as of December 31, 2015, respectively. About Prime Acquisition Corp. Prime Acquisition Corp. is a Cayman Islands company that owns and operates office, commercial and industrial properties in Italy. Prime is focused on building a portfolio of high yield-producing assets. Forward-looking Statements This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Prime Acquisition Corp. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Prime's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements: • Continued compliance with government regulations; • Changing legislation or regulatory environments; • Requirements or changes affecting the businesses in which Prime is engaged; • Industry trends, including factors affecting supply and demand; • Labor and personnel relations; • Credit risks affecting the combined business' revenue and profitability; • Changes in the Italian real estate industry;
• Changing interpretations of generally accepted accounting principles;• General economic conditions; and • Other relevant risks detailed in Prime's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Prime does not assume any obligation to update the information contained in this press release.