MIAMI, Nov. 22, 2019 (GLOBE NEWSWIRE) -- Touchpoint Group Holdings, Inc. (OTCQB: TGHI) (Company or Touchpoint) a media and digital technology holding company, today provided a business update and reported financial results for the third quarter ended September 30, 2019.
Mark White, Chief Executive Officer of Touchpoint, stated, “This was a transformational quarter for the Company as we concentrated our efforts and resources on expanding the Touchpoint software business and invested in the Touchpoint brand. This coincides with our recent name change to reflect our focus on digital marketing, which aligns with our strategic plan of becoming a leading media and digital technology holding company.”
“Touchpoint is a robust fan engagement platform designed to enhance the fan experience and drive commercial aspects of the sports and entertainment arenas. Our platform is optimized for iOS and Android, as well as internet and TV-based applications to bring fans closer to celebrities or elite influencers by providing access to proprietary content, and livestream events, as well as exclusive merchandise.”
“Touchpoint is in late stage negotiations with licensing customers in e-sports gaming and social media influencers to license the Touchpoint platform. We anticipate entering into approximately five new licensing contracts in the near future, and that such licenses will bring significant revenues and status to the group. As we move forward with these significant wins, we are anticipating exponential growth in terms of revenue, profits and cash flows for 2020.”
“Given the new direction of the Company, we have recently decided to sell our interests in Love Media House and Browning Productions. We are currently in negotiations and are extremely pleased to have had the opportunity to work with these two companies.”
Financial Results for the Third Quarter of 2019
Revenue for continuing operations for the three months ended September 30, 2019 increased by approximately $79,000 over the same period in 2018 due to the signing of the new Touchpoint licensing contracts.
Gross margin deficit for the three months ended September 30, 2019 was approximately $57,000 as compared to a $106,000 gross margin deficit for the three months ended September 30, 2018. The improvement was due to the increase in revenue of $79,000 offset by the increase in amortization of software development costs.
Operating expenses, including general and administrative expenses, acquisition related costs and depreciation incurred during the three months ended September 30, 2019 were approximately $1,047,000, a reduction of approximately $110,000 compared to approximately $1,157,000 incurred in the three months ended September 30, 2018. The major reduction in costs related to consulting costs, due diligence and advisory costs incurred in the acquisitions undertaken in 2018.
Net loss from continuing operations for the three months ended September 30, 2019 was approximately $1,145,000 as compared to net loss of approximately $1,284,000 for the same period in 2018. The decrease in net loss is mainly attributable to the decrease in general and administrative expenses, as discussed above.
Financial Results for the nine months ended September 30, 2019
Revenue from continuing operations for the nine months ended September 30, 2019 was approximately $130,000 as compared to approximately $108,000 for the nine months ended September 30, 2018, an increase of approximately $22,000, or 20.4%. The increase was due to Touchpoint Platform license sales.
Gross margin deficit from continuing operations for the nine months ended September 30, 2019 was approximately $289,000 as compared to a deficit of $230,000 for the nine months ended September 30, 2018, an increase of approximately $59,000. The increase was mainly due to the additional amortization charge of $81,000 offset by the increase in license revenue of $22,000.
Operating expenses from continuing operations, including general and administrative expenses, depreciation and acquisition costs were approximately $2,628,000 and $6,033,000 during the nine months ended September 30, 2019 and 2018, respectively. The reduction in operating costs primarily related to the acquisition costs and fundraising costs incurred in 2018 that were not incurred in the same period in 2019.
Net loss from continuing operations for the nine months ended September 30, 2019 was approximately $2,432,000 as compared to loss of approximately $6,675,000 for the same period in 2018. The net loss decrease was primarily due to the decrease in amortization charges, non-cash general and administrative expenses, and fundraising and acquisition costs.
About Touchpoint Group Holdings.
Touchpoint Group Holdings Inc. is a media and digital technology acquisition and software company, which owns Love Media House, a full-service music production, artist representation and digital media business. The Company also and holds a majority interest in 123Wish, a subscription-based, experience marketplace, as well as majority interest in Browning Productions & Entertainment, Inc., a full-service digital media and television production company. For more information, see https://touchpointgh.com/.
Safe Harbor Statement
This news release may contain “forward-looking” statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks include such factors as the inability to enter into agreements with parties with whom we are in discussions, the uncertainty of consumer demand for the Company’s products, as well as additional risks and uncertainties that are identified and described in the Company’s SEC reports. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Crescendo Communications, LLC