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Fraud Protection Network, Inc. Reports 2018 Second Quarter Financial Results

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Fraud Protection Network, Inc. Reports 2018 Second Quarter Financial Results

PR Newswire

HALLANDALE BEACH, Fla., Aug. 13, 2018 /PRNewswire/ -- Fraud Protection Network, Inc. (the "Company" or "Fraud Protection Network"), which offers consumer credit and identity solutions both direct-to-consumers as well as to enterprise customers, today announced financial results for its second quarter ended June 30, 2018.

Fraud Protection Network, Inc. (PRNewsFoto/Fraud Protection Network)

Second Quarter 2018 Financial Highlights

  • Revenues were $475,238 compared to $67,543 for the comparative 2017 quarter, an increase of 604%.
  • Loss from operations was $576,413 compared to $398,470 for the comparative 2017 quarter.
  • Net loss was $643,973 compared to $440,798 for the comparative 2017 quarter.

Edward Margolin, Chief Executive Officer of Fraud Protection Network, stated, "I am very proud of our team at Fraud Protection Network in achieving these second quarter results and pleased to announce record revenues on a quarterly basis.  We are extremely excited about the prospects for future growth." 

The tables below are derived from the Company's unaudited, condensed financial statements included in its Quarterly Report on Form 10-Q filed today with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company's results of operations for the period ended June 30, 2018.

Note Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expectations and potential for the Company's future.  The Company has tried to identify these forward-looking statements by using words such as "may", "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions.  These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.  These risks include the inability to expand our customer base, pricing pressures, lack of success of new sales people and any unanticipated issues. No assurance can be given that the actual results will be consistent with the forward-looking statements.  Investors should read carefully the factors described in the "Risk Factors" section of the Company's filings with the SEC, including the Company's annual financial statements for the year ended December 31, 2017 included in Form S-1, as amended, for information regarding risk factors that could affect the Company's results.  Except as otherwise required by federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

About Fraud Protection Network, Inc.

Fraud Protection Network, headquartered in Hallandale Beach, Florida, provides consumer credit and identity solutions, both direct-to-consumers as well as to enterprise customers. A commitment to technology enables the Company to deliver innovative, customized solutions designed to meet its customers' specific needs. The Company's consumer platforms include the subscription-based combination of identity theft protection services and on-time rental reporting as well as peer-to-peer tenant screening. The Company's enterprise solutions include Credit PreScreening, Loan PreQualification, software development, and EI3PA hosting services.

Company Contact:

Fraud Protection Network, Inc. 
Janette Rodriguez, Marketing  
Tel: (855) 203-0683 
Email: pr@fraudprotectionnetwork.com

Investor Relations Contact:

First Apex International
Email: admin@firstapexinternational.com

 

 

FRAUD PROTECTION NETWORK, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)










For the Three Months  Ended


For the Six Months  Ended


 June 30, 


 June 30, 


2018


2017


2018


2017









Net revenues

$           475,238


$             67,543


$           803,113


$             84,398









Operating expenses:








Sales and marketing

166,368


11,111


294,981


14,989

Data

269,071


107,203


414,261


146,815

Technology and software maintenance

51,534


49,047


97,046


79,265

General and administrative

537,856


276,554


853,044


477,975

Depreciation and amortization

26,822


22,098


53,729


36,158

Total operating expenses

1,051,651


466,013


1,713,061


755,202









Operating loss

(576,413)


(398,470)


(909,948)


(670,804)









Other income (expense):








Interest income

574


-


574


-

Interest expense

(68,134)


(42,328)


(114,816)


(71,945)

Total other expense, net

(67,560)


(42,328)


(114,242)


(71,945)









Loss before income taxes

(643,973)


(440,798)


(1,024,190)


(742,749)









Provision for income taxes

-


-


-


-









Net loss

$         (643,973)


$         (440,798)


$      (1,024,190)


$         (742,749)









Loss per share:








Basic and diluted

$               (0.06)


$               (0.05)


$               (0.10)


$               (0.08)









Weighted average number of common








shares outstanding:








Basic and diluted

10,074,118


9,524,549


10,037,264


9,682,619









 

 

FRAUD PROTECTION NETWORK, INC.

CONDENSED BALANCE SHEETS






 June 30, 


 December 31, 


2018


2017*


(Unaudited)







Assets








Current assets:




Cash

$             61,024


$           179,675

Accounts receivable

168,633


32,069

Deferred costs

17,080


12,276

Prepaid expenses and other current assets

45,072


37,594





Total current assets

291,809


261,614





Property and equipment, net

107,596


120,921

Software development costs, net

261,169


195,251

Investment in joint venture

115,734


116,463

Other assets

2,430


2,430





Total assets

$           778,738


$           696,679





Liabilities and shareholders' deficit








Current liabilities:




Accounts payable

$           404,739


$           145,523

Accrued expenses and other current liabilities

71,514


112,663

Deferred revenues

78,839


48,816

Convertible notes payable, current

1,285,000


1,430,000

Total current liabilities

1,840,092


1,737,002





Long-term liabilities:




Convertible notes payable, non-current (net of unamortized debt discount




of $72,207)

427,793


-





Total liabilities

2,267,885


1,737,002





Commitments and contingencies - See Note 8








Shareholders' deficit:








Preferred stock, par value $0.001 per share; 1,000,000 shares authorized;




1,000,000 shares issued and outstanding 

5,000


5,000

Common stock, par value $0.001 per share; 50,000,000 shares authorized;




10,289,567 and 10,000,000 shares issued and outstanding 




at June 30, 2018 and December 31, 2017, respectively

10,290


10,000

Additional paid-in capital

5,093,990


4,518,914

Accumulated deficit

(6,598,427)


(5,574,237)





Total shareholders' deficit

(1,489,147)


(1,040,323)





Total liabilities and shareholders' deficit

$           778,738


$           696,679





* Restated for adoption of ASC 606.




 

 

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SOURCE Fraud Protection Network, Inc.

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