FaceBank Group Reports Third Quarter 2019 Results
Company Completes Transformative Acquisitions and Delivers First Revenues
New York, NY, Nov. 21, 2019 (GLOBE NEWSWIRE) -- FaceBank Group, Inc. (OTC: FBNK), a digital human technology company, focused on the development, collection, protection and preparation of the personal digital likeness assets, of celebrities and consumers, for use in artificial intelligence, entertainment, personal productivity and social networking, today announced financial results for the third quarter ended September 30, 2019.
“We are pleased to report our third quarter results, announcing for the first time the combination of our core digital human technology business with our recent distribution related acquisitions,” stated John Textor, CEO of FaceBank Group. “With our third quarter strategic acquisitions of FaceBank AG and Nexway AG, we have started reporting revenue and are now well positioned to commercialize our technologies and intellectual property across a global digital distribution platform.”
“We delivered a transformational quarter and I am extremely pleased with our results. Our goal is to collect, protect and activate the world’s faces, celebrity and consumer, to develop what is possibly the world’s largest conceived intellectual property portfolio. During the quarter, we successfully combined our mature human animation technology portfolio, with actionable and exciting celebrity-based IP, and existing operating companies with proven global digital distribution. Looking ahead, we expect revenue growth and profitability contributions from our acquired businesses as we look to capitalize on the high-growth global digital human industry,” concluded Mr. Textor.
Third Quarter 2019 Financial Highlights:
(All comparisons are relative to the third quarter of 2018)
- Revenues grew to $5.83 million, as compared to $0.
- First revenues recorded, beginning September 19, with 11 days of contribution.
- Net Loss of $7.17 million, or $0.29 per share, as compared to a net loss of $4.26 million, or $0.90 per share.
- Non-GAAP Operating Cashflow (EBITDA) loss of $1.65 million, as compared to a EBITDA loss of $2.93 million.
- Cash increased to $5.9 million as of September 30, 2019, compared to $0.04 million.
- Total assets increased to $373.2 million as of September 30, 2019, compared to $289.9 million.
- Total stockholders’ equity of $234.1 million, as of September 30, 2019, compared to $235.7 million.
Third Quarter 2019 Business Highlights:
- On July 31, 2019, the Company entered into a joint venture and revenue share agreement with professional boxing promoter and retired professional boxer, Floyd Mayweather, concerning the development of the hyper-realistic, computer generated ‘digital likeness’ of the face and body of Mr. Mayweather for global exploitation in commercial applications.
- On August 15, 2019, the Company acquired Facebank AG, a Swiss holding company with control interests in a number of market leading digital solutions businesses, including a global e-commerce and software solutions platform that empowers the explosive growth of the digital human industry: digital likeness assets for celebrities, consumers, entertainment, games, and artificially intelligent chatbots and digital assistants.
- On September 19, 2019, the Company, through its wholly owned subsidiary Facebank AG, completed its majority acquisition of Nexway AG, a German-listed digital solutions company with a global footprint to offer merchants around the world, including now its parent company FaceBank Group, turnkey solutions for the management all of their global e-commerce needs and infrastructure, from product/apps download support, to payment processing and use of all major payment methods, to tax filings in all applicable jurisdictions worldwide, to compliance with data privacy and other applicable laws, to customer service and reporting.
About FaceBank Group, Inc.
FaceBank Group, Inc. (OTC: FBNK) is a digital human technology company, focused on the development, collection, protection and preparation of the personal digital likeness assets, of celebrities and consumers, for use in artificial intelligence, entertainment, personal productivity and social networking.
FaceBank Group, including its consolidated companies, is a globally recognized developer of hyper-realistic digital humans – computer generated assets that can be distributed across the full spectrum of traditional media and emerging display technologies, including live entertainment, virtual reality, augmented reality, mobile, interactive and artificial intelligence applications. We are focused on the development, collection, protection and preparation of the personal digital likeness assets, of celebrities and consumers, for use in artificial intelligence, entertainment, personal productivity and social networking. The Company’s business plan is to generate revenues through the development and deployment of digital human characters, for celebrities and consumers, but also through the roll-up acquisition of the digital human industry. The Company believes it has the opportunity to make strategic acquisitions of technology and revenue-generating companies, to become a dominant global leader in a sizable and lucrative digital human industry that is, thus far, largely unrecognized as an industry.
We believe that digital humans will be ubiquitous in society, culture and industry. In the last decade, hyper-realistic digital humans have performed in movies such as The Curious Case of Benjamin Button or on stage such as the virtual performance of a digital Tupac Shakur at the Coachella Valley Music Festival. We expect that, in years to come, digital humans will not only perform for audiences on stage and in film, but they will also represent individual consumers as digital likeness avatars, in realistic and fantasy form, appearing and interacting on the consumer’s behalf in electronic and mobile communication, social media, video game, virtual reality, and augmented reality.
Our leadership team is currently focused on applications of digital humans in entertainment. We believe the entertainment industry provides us with attractive near-term opportunities to put digital humans to work in proven performance-oriented business models, while also allowing us to use the visibility of our globally recognized celebrities to showcase our digital human technologies and their applications across other industries. Accordingly, our current business plan is to generate revenues from our digital human representations of some of the world’s best-known living and late celebrities.
With an established digital human technology portfolio, and celebrity/entertainment IP poised for commercialization, FaceBank is also looking beyond its celebrity-based applications. It’s true that a collection of the faces of iconic celebrities surely represents a sizable and valuable IP portfolio, but much larger is the IP portfolio of the billions of consumers’ faces that are already being scanned, by kiosks and by mobile devices, and activated through applications of fun, personal productivity and social networking. FaceBank’s goal is to collect, protect and activate the world’s faces, quite possibly the world’s largest conceived intellectual property portfolio.
FaceBank’s plan is to use its early-mover advantage with the world’s leading celebrities, to continue to promote innovative, lucrative and globally visible content, with the ultimate goal to teach the world of consumers about the many applications of their own digital likeness…their own faces. FaceBank is confident in the revenue potential of its celebrity-driven content, such as Virtual Mayweather, Virtual MJ and Kung Fu Panda, but a micro-payment model that attaches to every use of a consumer’s face, multiplied by the billions of consumers that are just beginning to experience their digital faces, is the goal of the FaceBank business model.
The ‘Big Idea’ of FaceBank, which is counter-intuitive to the traditional paradigm of celebrity-driven entertainment media, is that the Consumer is the IP…and a portfolio of a billion consumers, whose faces are activated into applications of entertainment, consumer products, personal productivity and social media, would measure far greater in value than the intellectual property portfolio of any traditional media company.
Our most recent SEC filings and financial information can be found on the Securities and Exchange Commission's website at www.SEC.gov
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FORWARD-LOOKING STATEMENTS; ADDITIONAL INFORMATION
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Released November 21, 2019