NEW YORK, March 12, 2014 /PRNewswire/ — EFactor Group Corp. (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. (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.
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.
Marion Freijsen – Co-Founder/COO
EFactor Group Corp.
Main: +1 650 380 8280
Email: [email protected]
Investor Relations Contact:
John Mattio, Sr. Vice-President
MZ North America
Direct: (212) 301-7131
Email: [email protected]