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Fraud Protection Network, Inc. Reports 2018 Second Quarter Financial Results
[August 13, 2018]

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


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: [email protected]

Investor Relations Contact:

First Apex International
Email: [email protected]

 

 





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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