EFactor Group Corp. Reports Full Year 2013 Results

NEW YORK, March 12, 2014 /PRNewswire/ -- EFactor Group Corp. (OTCBB: EFCT) ("EFactor Group Corp." or "the Company"), owner of EFactor.com, a niche social network for entrepreneurs, content aggregator and provider of resources to entrepreneurs worldwide, today announced financial results for the year ended December 31, 2013.

Full Year 2013 Highlights

  • Revenues increased 140% to $741,785
  • Gross margin increased from 43.3% in FY 2012 to 71.4% in FY 2013
  • Added Public Relations capabilities with MCC acquisition
  • Reduced cash outflows from operations by approximately $139,000 year-over-year

"We have been very pleased to see the combination of our expanding subscriber base on EFactor.com and consistent performance by EQMentor and MCC have significantly boosted our year-over-year revenue," began Adrie Reinders, CEO of EFactor Group Corp.  "As a management team, we believe the best is yet to come from our service offerings as the entrepreneurial communities in our major markets in the US, the UK, India, China and the Netherlands trend upwards.   We further believe we have carved out a niche in the market specifically designed to cater to entrepreneurs.  This often underserved market segment is populated with individuals who need the services and education we can provide as they look to grow their businesses.  Outside of our core group of operating subsidiaries, we are constantly evaluating add-on businesses and offerings consistent with our mission to benefit our entrepreneur subscriber base while growing EFactor Group Corp's revenue and earnings for shareholders," Reinders concluded.

EFactor Group Corp. generates revenue from four primary sources: (1) member fees; (2) sponsorships; (3) public relation and advisory services; and (4) advertising.   Management has invested in technology and personnel to grow revenues and cash flows from each business source. Revenue for the twelve months ended December 31, 2013 was $741,785, an increase of 140% compared to $309,607 in the corresponding period a year ago due to a full year of revenue from EQMentor, the acquisition of MCC International and increasing subscribers on EFactor.com.

EFactor.com is the Company's flagship operating subsidiary and is one of the leading niche social networks designed to service entrepreneurs with valuable and cost-saving business tools, content, on-line and off line events hosted by well-known business leaders, funding strategies, and an active social network of more than one million entrepreneur-subscribers.   Particularly, EFactor.com's events have hosted more than 7,500 participants over the last year.  Events are scheduled  in cities worldwide on a regular basis for EFactor.com members.   In one such New York City event last year, former Shark Tank panelist, Kevin Harrington, hosted a "pitch event" presentation whereby a select group of EFactor.com members competed for an award of $2,500 for the best entrepreneurial business or idea.   EFactor Group Corp. maintains that such live, face-to-face events differentiate the Company from other, purely virtual social networks and allows its members to create real life connections.

EFactor.com's platform enables access to a network of contacts, registration for networking events, advisory consulting and a broad range of other services specifically catering to the needs of entrepreneurs.    The Company believes that with EFactor.com, entrepreneurs can create new connections that bring value to the entrepreneur's business and entrepreneurial ideas. The core of EFactor.com's service is to create valuable connections that are based on a strong proprietary algorithm driven by the Company's database of subscribers.

In addition, EFactor launched its unique "EScoreTM" system in the last quarter of 2013. EScore™ members can benchmark their skill level and progress in five distinct business categories; Finance, Technology, Sales & Marketing, Leadership and last but not least - Social Value. Through a unique set of questions and tasks, members can not only achieve a score but continue to measure it as they gain experience or bring in valuable members to their team. In addition, EFactor will help each entrepreneur build a strong business based on the information provided through the EScore™ system and unique matching that takes place subsequently.

Operating expenses for the twelve months ended December 31, 2013 were $4,615,376 compared to $4,000,874 for the twelve months ended December 31, 2012. General and administrative expenses were $3,946,635, up 22% compared to $3,287,061 for the full year of 2012. EFactor Group Corp. had an operating loss of $4,093.522 compared to a loss of $3,825,478 in the same period a year ago.

Net loss attributable to common shareholders was $5,947,079, up from a loss of $4,111,151 in the full year of 2012. The Company recorded a $1,026,859 non-cash loss on extinguishment of debt in the full year of 2013. The net loss per share was $0.15 in the full year of 2013, an improvement from $5.28 per share in the prior year period. The weighted average fully diluted shares outstanding was 40,101,081 for the full year 2013.

The Company invested $354,825 in cash for capital expenditures including website enhancements in 2013 compared to $208,748 in the same period a year ago.

About EFactor Group Corp.

EFactor Group Corp. (OTCQB: EFCT) has at its core EFactor.com, a niche social network for entrepreneurs. EFactor.com provides its members with the people, tools, marketing and expertise to succeed and make real, trustworthy and lasting connections. At the core of the network lies a strong algorithm that allows members to not only connect with a lot of people, but with the right people. In addition, EFactor.com provides knowledge, facilitates preparing for funding and resources to reduce business costs, delivered through a mix of online social networking and offline domestic and international events.

EFactor.com has over one million members in 222 territories across 240 industries. It is incorporated in Nevada and headquartered in San Francisco. For more information, visit http://www.efactor.com

EFactor Group Corp. also has various subsidiary service organizations including a UK communications and public relations agency and a company that delivers matching software for mentors to find the best mentees.  For more information about EFactor Group Corp. please visit, http://efactorgroup.com/

The EFactor.com Value – The Entrepreneurs Wingman

EFactor.com is a social network designed to support you as your business grows, along every step of your journey. We'll be there to congratulate you every time you win and will coach and inspire you whenever you feel frustrated by setbacks. You can count on us to connect you with the right people for you and your company and offer you the resources and talent that will help you succeed. We are highly motivated everyday people who genuinely care about our team and customers. We cheer each other on and have each other's back. We get to see our ideas come to life every single day. We're entrepreneurs, contributing our expertise to the community.

Forward-Looking Statements:

Safe Harbor: This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of EFactor Corp., to be materially different from the statements made herein.

Company:
Marion Freijsen – Co-Founder/COO
EFactor Group Corp.
Main: +1 650 380 8280
Email: marion@EFactorgoup.com

Investor Relations Contact:
John Mattio, Sr. Vice-President
MZ North America
Main: (212)301-7130
Direct: (212) 301-7131
Email: john.mattio@mzgroup.us

- FINANCIAL TABLES -


EFACTOR GROUP CORP.

CONSOLIDATED BALANCE SHEETS

























December 31,


December 31,





                      ASSETS


2013


2012











CURRENT ASSETS:








Cash



$

43,377

$

46,870



Accounts receivable, net of allowance for doubtful accounts of $6,318 and $2,097


75,071


20,982



Other current assets



8,878


14,469




Total current assets


127,326


82,321












Property, website and equipment, net of accumulated







depreciation of $1,102,939 and $827,619 for 2013 and 2012, respectively.


461,499


341,674



Goodwill




3,646,994


2,131,516



Deferred financing



347,764


-



TOTAL ASSETS


$

4,583,583

$

2,555,511













           LIABILITIES AND STOCKHOLDERS' DEFICIT















CURRENT LIABILITIES:








Accounts payable


$

1,085,122

$

641,534



Accounts payable - related party



657,806


38,548



Accrued expenses



882,758


213,221



Operating line of credit



1,110,005


625,604



Deferred revenue



71,836


227,044



Current portion of note payable - third parties, net of discount


318,711


101,932



Current portion of convertible note payable - third parties, net of discount


650,762


276,809



Current portion of note payable - related parties, net of discount


285,860


163,675




Total current liabilities


5,062,860


2,288,367



Other Long-term obligations



155,895


-



Non-current portion of convertible note payable - third parties net of discount


13,598


18,544




Total Non-Current Liabilities


169,493


18,544











TOTAL LIABILITIES


$

5,232,353

$

2,306,911











Commitments and contingencies



-


-











STOCKHOLDERS' EQUITY (DEFICIT)







Preferred stock, $0.001 par value, 20,000,000 shares authorized, 2,500,000







and 5,000,000 issued and outstanding as of December 31, 2013 and





December 31, 2012, respectively.

$

2,500

$

5,000



Common stock, $0.001 par value, 175,000,000 shares authorized,







59,573,174 and 1,053,751 issued and outstanding as of December 31,







2013 and 2012 respectively.


59,573


1,054



Accumulated other comprehensive income


(5,244)


-



Additional paid-in capital



16,978,361


11,979,427



Accumulated deficit



(17,683,960)


(11,736,880)




Total stockholders' equity (deficit)


(648,770)


248,600












TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

4,583,583

$

2,555,511











 

 

EFACTOR GROUP CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS












For the twelve months ended     






December 31,






2013


2012

Net revenues



$

741,785

$

309,607

Operating expenses







Cost of revenue



219,931


134,211


Sales and marketing



422,138


344,517


General and administrative



3,946,635


3,287,061


Depreciation and amortization



246,603


369,296



Total operating expenses



4,835,307


4,135,085









Loss from operations



(4,093,522)


(3,825,478)

Other income (expense):







Interest expense



(911,527)


(297,684)


Loss on extinguishment of debt



(1,026,859)


-


Other  income (expense)



84,829


12,011



Total other income (expense), net


(1,853,557)


(285,673)








Loss before income taxes



(5,947,079)


(4,111,151)


Income tax expense



-


-

Net loss


$

(5,947,079)

$

(4,111,151)







Other comprehensive loss:







Foreign currency translation


(5,244)


-

Comprehensive loss


$

(5,952,323)

$

(4,111,151)









Basic and diluted net loss per common share

$

(0.15)

$

(5.28)









Weighted average shares used in completing

basic and diluted net loss per common share


40,101,081


779,338

 


 

EFACTOR GROUP CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS








For the twelve months ended December 31,








2013


2012

CASH FLOWS FROM OPERATING ACTIVITIES:






Net loss




$

(5,947,079)

$

(4,111,151)


Adjustments to reconcile net loss to net cash used in operating activities:




    Depreciation and amortization



246,603


369,296


    Stock option expense




78,200


373,239


    Amortization of debt discount



703,293


249,590


    Stock compensation expense



1,195,788


1,124,042


    Provision for bad debts



4,221


-


    Gain on forgiveness of accounts payable


(84,829)


-


    Loss on extinguishment of debt



1,026,859


-


Changes in operating assets and liabilities:








Accounts receivables



(9,110)


(433)




Other current assets



8,503


(9,826)




Accounts payable



463,925


298,911




Accounts payable - related party


640,771


19,270




Accrued expenses



248,995


(82,348)




Deferred revenue



(162,708)


43,870

NET CASH USED IN OPERATING ACTIVITIES:

$

(1,586,568)

$

(1,725,540)











CASH FLOWS FROM INVESTING ACTIVITIES:






Cash paid for acquisition of property, website and equipment

(354,825)


(208,748)


Cash acquired in reverse merger with acquisitions


851


-


Cash acquired from MCC


23,593


-


        Net cash used-in investing activities

$

(330,381)

$

(208,748)











CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from notes payable



1,712,300


834,619


Proceeds from notes payable - related parties


42,111


204,800


Proceeds from issuance of shares


167,002


934,734


Repayment of notes payable



(2,713)


(4,254)


       Net cash provided by financing activities

$

1,918,700

$

1,969,899











NET EFFECT OF EXCHANGE RATES ON CASH


(5,244)


-











NET INCREASE (DECREASE) IN CASH


(3,493)


35,611








CASH, BEGINNING BALANCE




46,870


11,259

CASH, ENDING BALANCE



$

43,377

$

46,870











Supplemental Disclosure of Cash Flows Information:






Cash paid for interest



$

144,053

$

7,700


Cash paid for income taxes


$

-

$

-

Non-cash Investing and Financing Activities:






Debt discount due to beneficial conversion feature

$

575,454

$

232,848


Conversion of Debt


$

532,504


562,930


Shares issued for acquisition of EQ Mentor

$

-

$

1,358,188


Conversion of preferred shares

$

12,906

$

-


AP-RP to ST Debt-RP

$

21,513

$

-


Deferred financing costs

$

475,000

$

-



SOURCE EFactor Group Corp.



RELATED LINKS
http://www.efactor.com

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