Avidus releases Q1 2014 financial statements
VANCOUVER, BC and MESA, AZ, May 22, 2014 /PRNewswire/ - Avidus Management Group Inc. (TSX-V: AVD; "Avidus" or the "Company") today announced its 2014 first quarter financial results.
Q1 2014 - Highlights and Milestones
- On January 14, 2014, Avidus announced the appointment of Doug Ridley as Chief Executive Officer and Director, and, Daniel Lundell as Chief Operating Officer of the Company.
- On February 20, 2014, the Company announced that it entered into an asset purchase agreement with Akea, LLC ("Akea"), a network marketing company based in Raleigh, North Carolina.
- On March 4, 2014, Avidus announced that it completed a non-brokered private placement of 8,044,224 units of the Company at a price of CAD $0.10 per unit for gross proceeds of CAD $804,224.
Doug Ridley, Avidus's CEO commented, "We are very pleased with the growth we have witnessed since announcing the Akea acquisition. Recruiting activity and revenue has increased dramatically since completing this accretive acquisition and has established the foundation for long-term growth. Revenues from Q1 2014 exceeded the combined revenues of Q3 and Q4 2013 and we are actively assessing other acquisition targets that will build further momentum as we continue to execute the Avidus business model."
In Q1 2014, ending March 31, 2014, the Company generated $652,000 in top line revenue, compared to $772,000 for the same period in Q1 2013, a decrease of $120,000. The Company attributes the decrease to an overall slowing of recruiting activities in mid-2013. However, the Company notes that recruiting has improved significantly since the launch of IS2, and has further accelerated since the Akea acquisition.
During the three months ended March 31, 2014 ("Q1 2014"), the Company incurred a net loss of $552,302, or $0.01 per share compared to $54,837 for the same three-month period in 2013 ("Q1 2013"). The increase in the net loss is primarily due to the one-time administrative and transactional costs associated with the Akea acquisition.
Q1 2014 sales increased by 300% from the previous quarter Q4 2013 and management expects sales to continue to grow throughout 2014 as the Company executes its business plan.
Avidus Management Group Inc. (TSXV: AVD, OTC: ASNHF), based in Mesa, Arizona, develops, acquires and operates growth direct sales and network marketing companies in the consumer health and wellness market. Avidus brands include Asantae (www.asantae.com) and Akea (www.akealife.com).
The Avidus leadership team has a combined experience of 100 years in network marketing and direct selling. For more information, visit www.avidusmanagementgroup.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the completion of the Acquisition and the private placement of Units. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward- looking information include, among others, the Company's ability to develop new products which will receive market acceptance, to receive market acceptance in new markets outside the United States, to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its intellectual property rights.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE Avidus Management Group Inc.