PORT ST. LUCIE, Fla., Aug. 24, 2015 /PRNewswire/ -- Pulse Evolution Corporation (OTC: PLFX), a recognized pioneer and leading developer of hyper-realistic digital humans for holographic live performances, virtual reality, augmented reality and artificial intelligence, today reported results for its 2nd fiscal quarter ended December 31, 2014. Along with today's filing, the Company also announced its intention to file, in addition to its remaining 2015 required financials, an S-1 registration statement in connection with an underwritten public offering and an 'up-listing' to a national stock exchange.
Commenting on the recent reporting periods, company Executive Chairman John Textor stated, "We are extremely pleased with the business and technology outcomes of our early development stages. We have quickly established ourselves as the early market leader in the creation of hyper-realistic digital humans for diverse applications. Our heavy investment from a committed group of strategic investors has positioned our company to be a leading developer of exciting new forms of entertainment and a pioneer in the powerfully emerging industries of virtual reality and artificial intelligence."
Total operating expenses during the three months and the six months, ending December 31, 2014 were $3,452,673 and $7,024,761, respectively. Net loss attributable to the common shareholders, for the three months and six months, ending December 31, 2014, were $3,292,373 ($0.03 per share) and $6,511,536 ($0.05 per share), respectively.
Proceeds from the sale of common stock, net of fees, during the three months and the six months, ending December 31, 2014 were $2,096,588 and $4,253,309, respectively. Subsequent to the quarter ended December 31, 2014, and through August 20, 2015, proceeds realized from the sale of preferred stock and common stock, sold in connection with two separate strategic partnerships, were $5,020,000.
Significant portions of the company's operating expenses are devoted to the development of digital likeness assets, technologies and entertainment properties related to its revenue share agreements with the estates of Michael Jackson, Elvis Presley and Marilyn Monroe. The company is also devoting substantial resources to the development of software, strategies, and relationships, to further develop the uses of digital humans in the fields of virtual reality, augmented reality and artificial intelligence. Though management recognizes the customary practice of capitalizing major portions of such expenses as assets available for future use, thus far management has decided to expense material portions of the costs of building the principal character assets, developing related shows and developing the company's future market technologies. While this may be the appropriately conservative approach during the development stages of the company, this accounting policy effectively understates the potential value of the company's assets. Management believes these operating expenses represent the building of valuable digital assets for future use in entertainment properties, as well as market leading technologies for the emerging industries of virtual reality and artificial intelligence.
Concluding with comments on the Company's decision to move to a national stock exchange, Mr. Textor elaborated, "Our company was initially listed on OTC Markets to provide a linked security for our European Depositary Receipts, which were listed on the Frankfurt Stock Exchange in early 2014, helping us to raise more than $15 million through institutional investors to fund our launch phase. We now feel that our leading role in the advancing uses of digital humans, combined with significant interest from both financial and strategic partners, suggests strongly that we should move to fully reporting status and be recognized on a national exchange. We look forward to this next stage of our development as a company."
About Pulse Evolution Corporation
The Company is a recognized pioneer and leading developer of hyper-realistic digital humans, and is most popularly known for producing the animated digital human likeness of the late Michael Jackson that appeared in a live performance of the Billboard Music Awards on May 18, 2014, seen by more than 11 million television viewers and generating more than 2,400 news articles and 98 billion Internet impressions.
Founded by the world's leading executives and producers of photorealistic digital humans, such as 'Benjamin Button' and 'Tupac at Coachella', Pulse Evolution is currently developing computer-generated digital humans for entertainment and media applications, such as holographic live performances, virtual reality, augmented reality and artificial intelligence. The Company has multi-year revenue share agreements with the Estates of Michael Jackson, Elvis Presley and Marilyn Monroe, three of the world's most valuable celebrity estates, and is principally focused on generating revenues from these agreements.
The Company sees digital humans emerging as ubiquitous in society, culture and industry. They will not only perform for audiences on stage or in film, but they will also represent individual consumers as digital likeness avatars, in realistic and fantasy form, appearing and interacting on the consumer's behalf in electronic and mobile communication, social media, video games and virtual reality. Future digital humans will provide a relatable human interface for artificial intelligence applications, 'thinking' machine systems that, through the Company's technology, will appear as realistic communicating humans in mobile devices, digital signage, classrooms and through lightweight wearable augmented reality glasses and virtual reality headsets. The Company's long-term goal is to be the 'face' of artificial intelligence, to provide a human form to interactive artificially intelligent computer beings.
Pulse is headquartered in Port St. Lucie, Florida with studios in San Rafael, California. Please visit www.pulse.co
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include comments about the company's plans, prospects, strategies and future performance. They are made on the basis of our management's current expectations and beliefs, as well as a number of assumptions regarding future events and business performance as of the time the statements are made. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the company's control. These could cause actual results to differ materially from the results expressed or implied in the forward-looking statements.
Such differences may result from actions taken by the company, as well as from developments beyond the company's control, including, but not limited to:
- price volatility of the company's common stock;
- changes in domestic and global economic conditions, competitive conditions and consumer preferences;
- our dependence on a limited number of large projects each year, and the timing of revenue flows from those projects;
- developments in the status of strategic initiatives taken by the company;
- audience acceptance of feature films we may co-produce; and
- rapid technological developments, including new forms of entertainment.
Further information on these and other factors and risks that could affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including under the heading "Risk Factors" in our Form 10-K filed October 10, 2014. These documents are available on the Investors section of the Company's website (http://www.Pulse.co). Information on our website is not part of this press release.
All information provided in this press release is as of August 20, 2015, and the Company undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
Contact: Melissa Santiago
Pulse Evolution Corporation
SOURCE Pulse Evolution Corporation