Mindpix Corporation Restates Financials for 2011-12 and Provides Current Finances for 2013
LAS VEGAS, July 12, 2013 /PRNewswire/ -- Mindpix Corporation (OTC: MPIX) today announced that it has posted its restated 2011 and 2012 financial statements for the year ended December 31, 2011 and December 31, 2012 and has also posted its financial statements for the six-month period ended June 30, 2013.
The year-end statements have been restated to reflect the fair value for financial statement purposes of the license for the music catalogue, the settlement of certain obligations of EMax Media and its affiliates by Mindpix, results of operations for its subsidiary that produced the New Beginnings 2012 concert, and stock based compensation.
During 2011, the Company improperly estimated the fair value of 400,000,000 shares of common stock issued as consideration for the music licensing rights and recorded the rights as an intangible asset with an initial carrying value of $40,000,000. During 2013, the Company determined that a proper estimate of the fair value of the 400,000,000 million shares of common stock issued as consideration for the music licensing rights should be based on the quoted trading price of the Company's common stock on the date of the licensing agreement, which was May 31, 2011. Accordingly, the Company estimated the fair value of the Music License Rights at $1,600,000.
During 2013, the Company concluded that the rights had no value to the Company due to its inability to perfect its rights to the underlying music library. Accordingly, the Company is restating its consolidated financial statements to recognize an impairment of the music license rights and reduce their carrying value to zero. The other specific changes to the financial statements can be found in Note 2 to the Company's financial statements which are posted on the OTC Markets Group website, www.otcmarkets.com
For the year ended December 31, 2012, the Company recorded revenue of $134,300 and operating expenses of $7,117,520 leaving a net loss of $6,911,508. For the prior fiscal year the Company reported no revenue and a loss of $1,688,933.
For the six-month period ended June 30, 2013 the Company reported no revenue and a net loss of $485,0111 reflecting a marked decrease in compensation expenses from the prior fiscal year as a whole.
"I am pleased to be able to present to the shareholders the restated financial statements for the Company," said Mindpix President & CEO Victor Siegel. "We have spent the last two and a half months since I came on board reviewing the financial statements and various corporate transactions to assure transparency. We can now concentrate on the implementation of our business plan."
About Mindpix Corporation:
Mindpix Corporation (OTC Pink: MPIX) is a multi-platform media company that primarily focuses on music and multi-media global television program content. MPIX is a go to source for the production, distribution and monetization of major music and entertainment events. MPIX owns, develops and licenses intellectual properties and program content across a full spectrum of media; the "Four Screens" that consumers connect to: Live Events, Television, Internet and Mobile Media. This 360-degree approach to media in all areas truly differentiates MPIX.
MPIX disclosure and financial information is published on OTC Markets and can be found at the following site: http://www.otcmarkets.com/stock/MPIX/filings/
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
SOURCE Mindpix Corporation