MIAMI, August 29, 2017 /PRNewswire/ --
Next Group Holdings, Inc. (OTCQB: NXGH) today announced results for its second quarter of fiscal year 2017 which ended June 30, 2017, including record revenue for the second consecutive quarter. The results were posted in the company's most recent Form 10-Q, filed with the SEC on August 21, 2017.
Revenue for the second quarter of fiscal year 2017 was a record $574,064, compared to $2,767 for the same period last year, and is largely attributable to the 2016 acquisition of Tel3, a business segment of an existing retail Pin-less long distance company, and which contributed revenue of $497,500 during the three months ended June 30, 2017. Revenue for the six months ended June 30, 2017 was $1,074,655 - an increase of 1,263% - compared to revenue of $85,070 for the same period of 2016, also attributable mainly to the 2016 acquisition of Tel3.
Net loss for the six months ending June 30, 2017 was $1,625,735 - or .01 per fully diluted share - compared to a loss of $3,744,081 for the same period of 2016, marking improvement of 47%. The decrease in net loss for the current quarter is due mainly to a decrease in stock based compensation in the current period partially offset by increased losses on the fair value measurement of derivative liabilities.
Cost of goods sold for the three months ended June 30, 2017 was $450,175, compared to $42,193 for the same period of the prior year, resulting in higher gross margins; $123,889 for the current quarter, compared to negative $39,426 for the same quarter of the prior year. The increase in cost of goods sold was the result of the acquisition of Tel3 in fiscal year 2016 and the incremental costs associated with offering wireless MVNO services for customers. For the six months ended June 30, 2017, cost of goods sold was $785,432, compared to $149,354 for the same period of the prior year, resulting in gross margins of $289,223 and negative $64,284.
Full contents of the 10-Q filing can be found at NXGH 10-Q for Six Month Period Ending June 30, 2017
NXGH has signed Letters of Intent with the following entities and is performing due diligence to complete the acquisition process.
Effective March 30, 2017 the Company entered into a non-binding letter of intent with AZUGROUP USA, LLC to acquire assets owned or controlled by that company and its majority shareholder, Mr. Antonio Faranda. Together, AZUGROUP USA, LLC and Feranda own or control three Italian companies, known collectively as AZUGROUP which, together generated minimum US $10 million in revenue during the 2016 calendar year. (With the company being the surviving entity)
Effective May 16, 2017 the Company also entered into a non-binding letter of intent with LIMECOM INC to acquire assets owned or controlled by that company. LIMECOM is expected to generate US $125 million in revenue with US$2.5 million EBITA during the fiscal 2017 calendar year.
Effective August 22, 2017 the Company entered into a binding letter of intent to acquire 51% of SDI NEXT Distribution, along with the option to acquire 51% of SDI Black 011 LLC.
About Next Group Holdings, Inc.
NXGH is a corporation headquartered in Miami, Florida, which, through its operating subsidiaries, engages in the business of using proprietary technology and certain licensed technology to provide innovative mobile banking, mobility, and telecommunications solutions to underserved, unbanked, and emerging markets. NXGH's principal executive offices are located at 1111 Brickell Avenue, Suite 2200, Miami, Florida 33131, and its telephone number at that location is (800) 611-3622. NXGH's web address is http://www.nextgroupholdings.com.
This news release contains "forward-looking statements", as that term is defined in section 27a of the united states securities act of 1933, as amended, and section 21e of the united states securities exchange act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as"estimate", "anticipate", "believe", "plan" or "expect" or similar statements are forward-looking statements. Forward-looking statements contained in this news release include statements relating to other publicly available information regarding the company.
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