Alliance Media Holdings Inc. Reports Financial Results For The Nine Months Ended March 31, 2019 And Twelve Months Ended June 30, 2018

NEW YORK, June 14, 2019 /PRNewswire/ -- Alliance Media Holdings Inc. ADTR, a developer, publisher and distributor of interactive video games and gaming products, today announced its financial results for the nine months ended March 31, 2019 and for the twelve months ended June 30, 2018.

Sales for the nine months ended March 31, 2019 decreased 78% to $6.1 million from $27.9 million for the nine months ended March 31, 2018.  The company lost $1.5 million for the nine months ended March 31, 2019 compared to a net loss of $2.2 million for the comparable period in 2018.

For the twelve months ended June 30, 2018 sales decreased 12% to $32.5 million from $36.7 million for the twelve months ended June 30, 2017.  The company lost $4.5 million for the year ended June 30, 2018 compared to a net loss of $1.8 million for the comparable period in 2017.

The company has prepared its consolidated financial statements using the generally accepted accounting principles applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business.  

Jay Gelman, Chairman and Chief Executive Officer, said, "The digital industry is on the verge of potential explosive growth with Google's entrance as a platform for streaming game content, Microsoft's continued investment in digital content, and significant attention being paid to digital offerings from all other platform holders. Valve (Steam), Sony, and Nintendo are also making downloadable and streaming digital content cornerstones of their future business. The box business, on the other hand, continues to see an industry-wide decline as consumers download more and more digital game content. 

"We have responded to these seismic industry shifts by exiting the distribution industry and placing our focus on digital content. To that end, over the last 12 months we dramatically reduced our inventory levels, reduced staff and cut other costs, and achieved a level of limited exposure of our accounts receivable. Our credit facility with PNC Bank will terminate on September 30, 2019 and we anticipate that we'll be in position to timely pay off all amounts due thereon by such date.  The outstanding amount due on the credit facility as of June 4, 2019 was $180,000."

Gelman continued, "At the same time that we were taking the necessary steps to exit the distribution business, we have executed on our digital strategy and currently publish content on all the listed platforms. We plan to be part of as many digital distribution platforms that show potential for positive sales growth. Our Zachtronics studio and our recently established Starcolt Studios in New Zealand, along with our previously announced publishing titles, are the foundations of our digital growth strategy to expand our studio and publishing footprint."

Gelman concluded, "While we recognize that the company will need capital to both sustain current operations and fund future growth, we do not know whether the company will be able to execute on a successful funding arrangement.  Substantial doubt exists about the company's ability to continue as a going concern. We do however look to the future with great anticipation both as a developer and publisher of digital content and believe we are well positioned to take advantage of the knowledge we have accumulated in our long history in the video game space."

Safe Harbor

Certain statements contained in this press release contain forward-looking statements including without limitation, statements concerning our operations, economic performance, and financial condition.  The words "estimate," "believe," "expect," "should"', "will", "plan", and "anticipate" and other similar expressions generally identify forward-looking statements, which speak only as of their dates.

Investors are cautioned that all forward-looking statements, which are based largely on our current expectations, involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including without limitation, risks associated with technological change, competitive factors and general economic conditions, including the related impact on discretionary consumer spending, our ability to obtain sufficient capital to both sustain current operations and fund future growth, changes in marketing and distribution strategies by manufacturers, timely development and release of video game products we produce, potential cost overruns in our development of video games, ability to protect our intellectual property rights, potential claims that we have infringed the intellectual property rights of others, market acceptance of games we develop and / or publish, ability to realize anticipated benefits of acquisitions, potential undiscovered liabilities of companies that we acquire, changes in our business or growth strategy, the emergence of new or growing competitors, various other competitive and technological factors. There can be no assurance that the results referred to in the forward-looking statements contained in this release will occur. The company has no duty and undertakes no obligation to update any forward-looking information, whether as a result of new information, future developments or otherwise.

SOURCE Alliance Media Holdings Inc.