Bright Mountain Media Reports Record Third Quarter 2020 Financial Results

Company Continues to Successfully Execute on Rollup Strategy

Boca Raton, FL, Nov. 25, 2020 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM), an end-to-end digital media and advertising services platform, has provided its financial results for the third quarter ended September 30, 2020.

Management Commentary

“The third quarter of 2020 was highlighted by our continued revenue growth - a testament to the successful execution of our rollup strategy - with the goal of creating an industry leading digital media and advertising services platform,” said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. “We continue to integrate Wild Sky Media post-acquisition and have been satisfied with the immense contributions their team has made to the broader organization thus far, expanding our reach into exciting new demographics through a diverse website portfolio.

“We are also exploring further potential acquisitions in what is shaping up to be a buyers market. Bright Mountain maintains a robust pipeline of potential acquisition candidates, though we will remain highly selective to ensure any target is accretive, reasonably valued and complementary to our core business.

“2020 has been a year of growth for Bright Mountain Media and I look forward to what 2021 holds. With a robust acquisition pipeline, a growing core business and a potential uplisting on the horizon – we are well positioned to create sustainable value for our shareholders over the long-term,” concluded Speyer.

Third Quarter 2020 Financial Summary

  • Total revenue for the third quarter of 2020 grew 132% to $4.9 million, compared to revenue of $2.1 million in the same year-ago quarter. The increase in revenue was largely due to the acquisition of Wild Sky Media, in spite of the negative influence of COVID-19 on the digital advertising market.
  • Selling, general and administrative expenses for the third quarter of 2020 were $5.5 million, compared to $2.7 million in the same year-ago quarter. The increase in selling, general and administrative expenses was due to the acquisitions of MediaHouse and Wild Sky which are not reflected in the prior period expenses
  • Net loss for the third quarter of 2020 was $56.6 million, compared to a net loss of $2.0 million in the same year-ago quarter. The increase in net loss was primarily non-cash, related to the impairment of goodwill from previous acquisitions.
  • Cash, cash equivalents and short-term deposits increased to $1.1 million as of September 30, 2020, compared with $1.0 million as of December 31, 2019.
  • Cash used in operations for the second quarter of 2020 was $2.1 million, compared with cash used in operations of $0.4 million in the same year-ago quarter.

About Bright Mountain Media

Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. Through the removal of middlemen in the advertising services process, Bright Mountain Media efficiently connects brands with targeted consumer demographics while maximizing revenue to publishers. Bright Mountain Media’s assets include Bright Mountain, LLC, MediaHouse (f/k/a NDN), Oceanside (f/k/a S&W Media), and Wild Sky Media including 24 owned and/or managed websites and 15 CTV apps. For more information, please visit www.brightmountainmedia.com.

Forward-Looking Statements for Bright Mountain Media, Inc.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes, ” and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to successfully integrate acquisitions., and the realization of any expected benefits from such acquisitions You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Bright Mountain Media, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on May 14, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Contact:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
949-259-4987
BMTM@mzgroup.us
www.mzgroup.us

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

  September 30, 2020  December 31, 2019 
  (unaudited)    
ASSETS        
Current Assets        
Cash and cash equivalents $1,050,370  $957,013 
Accounts receivable, net  5,409,605   3,997,475 
Note receivable, net  13,646   63,812 
Prepaid expenses and other current assets  702,054   752,975 
Current assets - discontinued operations  -   1,705 
         
Total Current Assets  7,175,675   5,772,980 
         
Property and equipment, net  119,912   30,666 
Website acquisition assets, net  12,789   48,928 
Intangible assets, net  12,052,337   19,610,801 
Goodwill  22,150,047   53,646,856 
Prepaid services/consulting agreements - long term  620,000   913,182 
Right of use asset  243,549   397,912 
Other assets  396,969   35,823 
Total Assets $42,771,278  $80,457,148 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current Liabilities        
Accounts payable $7,605,873  $8,358,442 
Accrued expenses  1,933,476   3,228,328 
Accrued interest to related party  12,720   6,629 
Premium finance loan payable  16,671   179,844 
Deferred revenues  65,512   6,651 
Long term debt, current portion  1,135,000   165,163 
Operating lease liability, current portion  221,763   211,744 
Current liabilities - discontinued operations  -   591 
Total Current Liabilities  10,991,015   12,157,392 
         
Long term debt to related parties, net  36,199   25,689 
Long term debt  18,588,440   - 
Deferred tax liability  283,213   581,440 
Operating lease liability, net of current portion  21,915   198,232 
Total Liabilities  29,920,782   12,962,753 
Commitments and Contingencies        
Shareholders’ Equity        
Convertible preferred stock, par value $0.01, 20,000,000 shares authorized,        
Series A-1, 2,000,000 shares designated, 1,200,000 and 1,200,000 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively  12,000   12,000 
Series B-1, 6,000,000 shares designated, 0 and 0 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively  -   - 
Series E, 2,500,000 shares designated, issued and outstanding at September 30, 2020 and December 31, 2019, respectively  25,000   25,000 
Series F, 4,344,017 shares designated, issued and outstanding at September 30, 2020 and December 31, 2019, respectively  43,440   43,440 
Common stock, par value $0.01, 324,000,000 shares authorized, 114,564,060 and 100,244,312 issued and 114,013,943 and 78,063,531 outstanding at September 30, 2020 and December 31, 2019, respectively  1,145,642   1,002,444 
Additional paid-in capital  96,360,804   86,856,500 
Accumulated deficit  (83,581,144)  (20,444,989)
Treasury Stock at cost 550,117 shares at September 30, 2020  (1,155,246)  - 
Total shareholders’ equity  12,850,496   67,494,395 
Total Liabilities and Shareholders’ Equity $42,771,278  $80,457,148 

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  For the Three Months Ended  For the Nine Months Ended 
  September 30, 2020  September 30, 2019  September 30, 2020  September 30, 2019 
             
Revenues                
Advertising $4,894,486  $2,113,276  $9,438,612  $3,915,326 
                 
Cost of revenue                
Advertising  2,085,060   1,432,922   5,005,646   2,874,076 
Gross profit  2,809,426   680,354   4,432,966   1,041,250 
                 
Selling, general and administrative expenses  5,493,343   2,734,203   13,860,462   4,452,490 
                 
Loss from operations  (2,683,917)  (2,053,849)  (9,427,496)  (3,411,240)
                 
Other income (expense)                
Interest (expense) income, net  (251,779)  16,234   (323,047)  37,281 
Gain on settlement  935,408   -   935,408   122,500 
Impairment of assets  (53,996,544)  -   (53,996,544)  - 
Settlement of contingent consideration  (750,000)  -   (750,000)  - 
Other income (expense)  -   (6,993)  (215)  (7,902)
Interest expense - related party  (2,045)  (5,574)  (6,091)  (17,289)
Total other (expense) income  (54,064,960)  3,667   (54,140,489)  134,590 
                 
Net loss from continuing operations  (56,748,877)  (2,050,182)  (63,567,985)  (3,276,650)
                 
Income (loss) from discontinued operations  -   13,649   -   (174,021)
                 
Net loss before tax  (56,748,877)  (2,036,533)  (63,567,985)  (3,450,671)
                 
Income tax benefit  177,089   -   431,830   - 
                 
Net Loss  (56,571,788)  (2,036,533)  (63,136,155)  (3,450,671)
                 
Preferred stock dividends                
Series A, Series E, and Series F preferred stock  (180,122)  (52,682)  (447,369)  (201,484)
                 
Net loss attributable to common shareholders $(56,751,910) $(2,089,215) $(63,583,524) $(3,652,155)
                 
Basic and diluted net loss for continuing operations per share $(0.51) $(0.03) $(0.59) $(0.05)
Basic and diluted net income (loss) for discontinued operations per share $0.00  $0.00  $0.00  $(0.00)
Basic and diluted net loss per share $(0.51) $(0.03) $(0.59) $(0.05)
Weighted average shares outstanding - basic and diluted  110,995,809   64,267,465   108,099,730   66,485,230 

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
September 30, 2020
(Unaudited)

  For the Nine Months Ended September 30, 
  2020  2019 
Cash flows from operating activities:        
Net loss $(63,136,155) $(3,450,671)
Add back: loss attributable to discontinued operations  -   174,021 
Adjustments to reconcile net loss to net cash used in operations:        
Depreciation  29,616   5,613 
Amortization of debt discount  10,510   10,472 
Amortization  3,289,330   120,668 
Impairment of tradename  -   20,800 
Impairment of goodwill  42,444,971   - 
Impairment of intangibles  11,551,573   - 
Gain on settlement  (935,408)  (122,500)
Stock option compensation expense  129,105   29,074 
Stock issued for services rendered  92,218   32,250 
Non-cash finance fee  275,000   - 
Non-cash settlement of contingent consideration  750,000   - 
Change in deferred taxes  (431,830)  - 
Provision for bad debt  287,068   29,338 
Changes in operating assets and liabilities:        
Accounts receivable  1,193,666   (808,812)
Prepaid expenses and other current assets  536,920   482,979 
Prepaid services/consulting agreements  293,182   - 
Other assets  263,836   (17,369)
Right of use asset and lease liability  (11,935)  - 
Accounts payable  (1,674,722)  1,078,205 
Accrued expenses  53,950   1,070,498 
Accrued interest – related party  6,091   3,213 
Deferred revenues  25,528   (4,163)
Net cash (used in) continuing operations for operating activities  (4,957,486)  (1,346,384)
Net cash (used in) discontinued operations  -   (155,739)
Net cash (used in) operating activities  (4,957,486)  (1,502,123)
         
Cash flows from investing activities:        
Purchase of property and equipment  (4,055)  (8,746)
Cash received in acquisition  -   603,744 
Principal collected on notes receivable  -   77,500 
Notes receivable funded  -   (1,156,887)
Cash acquired from Wild Sky  1,357,669   - 
Cash paid for website acquisition  -   (8,000)
Net cash provided by (used in) investing activities  1,353,614   (492,389)
         
Cash flows from financing activities:        
Proceeds from issuance of common stock, net  3,586,148   1,651,410 
Payments of premium finance loan payable  (163,173)  (89,154)
Dividend payments  (235,129)  (201,847)
Principal payments received for notes receivable  44,583   - 
Proceeds from issuance of preferred stock  -   250,000 
Principal payment on notes payable  464,800   (64,681)
Net cash provided by financing activities  3,697,229   1,545,728 
         
Impact on foreign exchange rates on cash  -   9,818 
Net increase (decrease) in cash and cash equivalents including cash and cash equivalents classified within assets related to continuing operations  93,357   (438,966)
Net (decrease) in cash related to discontinued operations  -   (15,971)
Net increase (decrease) in cash and cash equivalents  93,357   (454,937)
Cash and cash equivalents at the beginning of period  957,013   1,042,457 
Cash and cash equivalents at end of period $1,050,370  $587,520 


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