Provision Holding Announces Financial Results for the Quarter Ended September 30, 2017
Key Highlights Include Appointment of Mark Leonard as CEO and Advancement of New Strategic Partnerships Towards Broad Deployment
CHATSWORTH, Calif., Nov. 30, 2017 (GLOBE NEWSWIRE) -- Provision Holding, Inc. (OTCQB:PVHO) today announced financial results for the quarter ended September 30, 2017.
- Appointed retail industry veteran Mark Leonard President and Chief Executive Officer
- Curt Thornton transitioned to Chairman of the Board and Chief Operating Officer
- Advanced hardware and software initiatives required to service U.S. Coinstar agreement
- Provision remains on track to deliver initial 300 units to Coinstar for deployment beginning by the end of 2017, and 2,500-3,000 units in 2018
“During the quarter, Provision laid the foundation for what we expect to be an exciting new chapter in the Company’s history,” commented Curt Thornton, Chairman and Chief Operating Officer of Provision. “We are excited by the increased interest to expand our advertising network. We expect this operating momentum to continue throughout fiscal 2018 and beyond."
Mr. Thornton continued, “To fully capitalize on the tremendous opportunity before us, we were fortunate to introduce Mark Leonard to Provision as its Chief Executive Officer in September. Mark’s operational expertise, established relationships and history of results-oriented execution across industries including retail and technology, will drive Provision forward, as we bring our technology into significant and diversified retail channel settings.”
Mark Leonard, Provision’s Chief Executive Officer added, “We have achieved significant corporate milestones towards our goal of securing commercial deployment on our Coinstar and Prosperity Investment opportunities. Importantly, we remain on track to begin installation of our initial 300 3D “toppers” onto Coinstar kiosks before the end of 2017, and an additional 2,500-3,000 units during calendar 2018, and expect to begin to generate meaningful advertising revenues as we scale our commercial footprint throughout the year.”
Mr. Leonard concluded, “We also expect initial deployment under our global, five-year ATM agreement in early 2018. We expect that these opportunities will far surpass, both in scale and economic value, our legacy agreement with Rite Aid. We look forward to communicating our progress with investors and to building sustainable value for our shareholders.”
Three Month Financial Results for the Period Ended September 30, 2017
Total revenue was $15,750 for the quarter ended September 30, 2017, compared to $58,712 for the same period in 2016. The decrease in revenue was related to a decrease in revenues from related party sales from the placement of 3D Savings Center kiosks into retail stores.
Gross loss was $3,117 in the quarter ended September 30, 2017 compared with a gross profit of $2,685 in the same period in 2016. The Company reported a net loss of $1.82 million, or $0.01 per share, for the quarter ended September 30, 2017, compared to a net loss of $1.62 million, or $0.02 per share, for the same period in 2016. The increase in net loss was due to changes in fair value of derivatives related to Provision’s stock price, higher amortization of debt and other financing costs, and higher interest expense.
For a more complete review of the Company’s results, copies of Provision Holdings Form 10-Q and its financial statements for the quarter ended September 30, 2017 may be found on the Company’s website.
About Provision Interactive Technologies, Inc.
Provision Interactive Technologies, Inc., a subsidiary of Provision Holding, Inc. (OTCQB:PVHO), is the leading developer of intelligent, interactive 3D holographic display technologies, software, and integrated solutions used primarily in retail settings. Provision’s 3D advertising displays are designed to increase in-store engagement, coupon redemption and point-of-purchase activity.
Provision's 3D holographic display systems represent a revolutionary technology that project full color, high-resolution videos into space detached from the screen, without the need for special glasses. Provision holds more than 10 patents related to its 3D holographic technology, for both consumer and commercial applications. For more information, visit www.provision.tv.
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements unless legally required.
|PROVISION HOLDING, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Other current assets||3,000||3,000|
|TOTAL CURRENT ASSETS||2,444,878||2,711,748|
|PROPERTY AND EQUIPMENT, net of accumulated depreciation||15,278||17,569|
|INTANGIBLES, net of accumulated amortization||169,605||170,229|
|LIABILITIES AND STOCKHOLDERS’ DEFICIT|
|Accounts payable and accrued expenses||$||2,961,380||$||2,753,444|
|Payroll taxes, interest and penalties||721,157||663,840|
|Current portion of convertible debt, net of unamortized debt discount of $475,524 and $660,141 and net of unamortized warrant discount of $31,742 and $79,783 and net of financing costs of $163,129 and $322,229, respectively||7,339,290||7,216,032|
|Notes payable, net of unamortized debt discount of $82,671 and $74,821, respectively||787,329||220,179|
|TOTAL CURRENT LIABILITIES||16,596,204||15,876,823|
|Preferred stock, par value $0.001 per share Authorized – 4,000,000 shares Designated 1,000 Series A preferred stock, Issued and outstanding – Nil and Nil shares, respectively||-||-|
|Common stock, par value $0.001 per share Authorized – 300,000,000 shares - issued and outstanding – 138,002,582 and 134,431,613, respectively||138,002||134,432|
|Common stock to be issued for services, par value $0.001 per share, 4,200,000 and 475,000, respectively||213,000||34,250|
|Additional paid-in capital||29,818,399||28,987,431|
|Less receivable for stock||(50,000||)||(50,000||)|
|TOTAL STOCKHOLDERS’ DEFICIT||(13,966,443||)||(12,977,277||)|
|TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT||$||2,629,761||$||2,899,546|
|PROVISION HOLDING, INC. AND SUBSIDIARIES|
|CONDENDSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended
|Software revenues – related party||-||49,842|
|COST OF REVENUES||18,867||56,027|
|GROSS (LOSS) PROFIT||(3,117||)||2,685|
|General and administrative||976,848||822,809|
|Research and development||88,629||150,132|
|TOTAL OPERATING EXPENSES||1,065,477||972,941|
|LOSS FROM OPERATIONS||(1,068,594||)||(970,256||)|
|OTHER INCOME (EXPENSE)|
|Change in fair value of derivative liability||113,330||59,857|
|Debt modification expense||(40,000||)||-|
|Amortization of debt and warrant discount and financing costs||(633,422||)||(458,855||)|
|TOTAL OTHER EXPENSE||(933,860||)||(653,271||)|
|LOSS BEFORE INCOME TAXES||(2,002,454||)||(1,623,527||)|
|Income tax expense||-||-|
|NET LOSS PER COMMON SHARE|
|Basic and diluted||$||(0.01||)||$||(0.02||)|
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING|
|Basic and diluted||136,233,921||93,155,328|
Released November 30, 2017