Bright Mountain Media Reports Record Second Quarter 2020 Financial Results

Boca Raton, Florida, UNITED STATES

Company Expects Fiscal 2020 Revenues to Grow to $22.0 Million

Boca Raton, FL, Aug. 26, 2020 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM), an end-to-end digital media and advertising services platform, has provided its financial results for the second quarter ended June 30, 2020.

Management Commentary

“The second quarter of 2020 witnessed the addition of our newly acquired Wild Sky Media, establishing new synergies and efficiencies that are further propelling growth,” said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. “Our success in growing our platform over the last two months has created a new perception within the industry, as we position ourselves as a leading end-to-end digital media and advertising services platform. This addition will enable us to capture more of the advertising spend within the value chain – driving us toward our $22.0 million revenue guidance for fiscal 2020.

“Our most recent acquisition, Wild Sky Media, an interactive media company that reaches over 30 million unique monthly users, has been immediately accretive and represents a significant growth opportunity as we continue to integrate them into the Bright Mountain Media platform. Their robust, complimentary portfolio of family-oriented websites provides access to valuable demographics, further expanding our reach as a Company. So far it has been a model acquisition by which we can measure future success against.

“We have continued to adapt to a changing digital advertising landscape in response to the COVID-19 pandemic. We look forward to the second half of 2020 as commercial accounts refocus their messaging and the political ad season ramps up. Bright Mountain is well positioned to capture a share of this ad spend due to our ability to efficiently connect brands with highly targeted consumer demographics.

“Finally, we continue to explore potential acquisitions, during what we are finding to be a buyers’ market. Given what we have accomplished to-date, taken in tandem with our pipeline, I believe we are well positioned to deliver value to our shareholders over the long-term. We look forward to sharing further updates on our emerging story at upcoming investor conferences in the third quarter of 2020,” concluded Speyer.

Second Quarter 2020 Financial Summary

  • Total revenue for the second quarter of 2020, was $2.3 million, compared to revenue of $0.7 million in the same year-ago quarter. The increase in revenue was due to the acquisitions of Wild Sky Media, Oceanside Media and MediaHouse, in spite of the negative influence of Covid-19 on the digital advertising market.
  • Selling, general and administrative expenses for the second quarter of 2020 were $4.4 million, compared to $0.8 million in the same year-ago quarter. The increase in selling, general and administrative expenses was due to the acquisitions of Oceanside, MediaHouse and Wild Sky which are not reflected in the prior period expenses
  • Net loss for the second quarter of 2020 was $3.1 million, compared to a net loss of $0.7 million in the same year-ago quarter. The increase in net loss was primarily related to an increase in operating expenses from the aforementioned acquisitions, which are not reflected in prior period expenses.
  • Cash and cash equivalents and short-term deposits were $1.9 million as of June 30, 2020, compared with $1.0 million as of June 30, 2019.
  • Cash used in operations for the second quarter of 2020 was $1.5 million, compared with cash used in operations of $0.4 million in the same year-ago quarter.

About Bright Mountain Media

Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. Through the removal of middlemen in the advertising services process, Bright Mountain Media efficiently connects brands with targeted consumer demographics while maximizing revenue to publishers. Bright Mountain Media’s assets include Bright Mountain, LLC, MediaHouse (f/k/a NDN), Oceanside (f/k/a S&W Media), and Wild Sky Media including 24 owned and/or managed websites and 15 CTV apps. For more information, please visit

Forward-Looking Statements for Bright Mountain Media, Inc.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes, ” and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to successfully integrate acquisitions., and the realization of any expected benefits from such acquisitions You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Bright Mountain Media, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on May 14, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Contact:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America


  June 30, 2020  December 31, 2019 
Current Assets        
Cash and cash equivalents $1,905,182  $957,013 
Accounts receivable, net  4,715,622   3,997,475 
Note receivable, net  35,215   63,812 
Prepaid expenses and other current assets  903,874   752,975 
Current assets - discontinued operations  -   1,705 
Total Current Assets  7,559,893   5,772,980 
Property and equipment, net  139,349   30,666 
Website acquisition assets, net  24,052   48,928 
Intangible assets, net  24,882,063   19,610,801 
Goodwill  64,568,671   53,646,856 
Prepaid services/consulting agreements - long term  697,500   913,182 
Right of use asset  296,514   397,912 
Other assets  448,575   35,823 
Total Assets $98,616,617  $80,457,148 
Current Liabilities        
Accounts payable $8,609,805  $8,358,442 
Accrued expenses  1,032,458   3,228,328 
Accrued interest to related party  10,675   6,629 
Premium finance loan payable  71,062   179,844 
Deferred revenues  80,741   6,651 
Long term debt, current portion  165,163   165,163 
Operating lease liability, current portion  218,697   211,744 
Current liabilities - discontinued operations  -   591 
Total Current Liabilities  10,188,601   12,157,392 
Long term debt to related parties, net  32,670   25,689 
Long term debt  18,588,440   - 
Deferred tax liability  433,955   581,440 
Operating lease liability, net of current portion  82,396   198,232 
Total Liabilities  29,326,062   12,962,753 
Commitments and Contingencies        
Shareholders’ Equity        
Convertible preferred stock, par value $0.01, 20,000,000 shares authorized,        
Series A-1, 2,000,000 shares designated, 1,200,000 and 1,200,000 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively  12,000   12,000 
Series B-1, 6,000,000 shares designated, 0 and 0 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively  -   - 
Series E, 2,500,000 shares designated, issued and outstanding at June 30, 2020 and December 31, 2019, respectively  25,000   25,000 
Series F, 4,344,017 shares designated, issued and outstanding at June 30, 2020 and December 31, 2019, respectively  43,440   43,440 
Common stock, par value $0.01, 324,000,000 shares authorized, 110,257,860 and 100,244,312 issued and 89,937,733 and 78,063,531 outstanding at June 30, 2020 and December 31, 2019, respectively  1,102,579   1,002,444 
Additional paid-in capital  95,116,892   86,856,500 
Accumulated deficit  (27,009,356)  (20,444,989)
Total shareholders’ equity  69,290,555   67,494,395 
Total Liabilities and Shareholders’ Equity $98,616,617  $80,457,148 


  For the Three Months Ended  For the Six Months Ended 
  June 30, 2020  June 30, 2019  June 30, 2020  June 30, 2019 
Advertising $2,273,940  $716,594  $4,544,126  $1,802,050 
Cost of revenue                
Advertising  1,097,504   555,458   2,920,586   1,441,154 
Gross profit  1,176,436   161,136   1,623,540   360,896 
Selling, general and administrative expenses  4,387,741   804,449   8,367,119   1,720,403 
Loss from operations  (3,211,305)  (643,313)  (6,743,579)  (1,359,507)
Other income (expense)                
Interest (expense) income, net  (82,261)  15,041   (71,268  20,138 
Gain on settlement of liability  -   -   -   122,500 
Other income (expense)  -   2,116   (215)  2,116 
Interest expense - related party  (2,023)  (5,514)  (4,046)  (11,715)
Total other (expense) income  (84,284)  11,643   (75,529)  133,039 
Net loss from continuing operations  (3,295,589)  (631,670)  (6,819,108)  (1,226,468)
Loss from discontinued operations  -   (72,206)  -   (187,670)
Net loss before tax  (3,295,589)  (703,876)  (6,819,108)  (1,414,138)
Income tax benefit  190,242   -   254,741   - 
Net Loss  (3,105,347)  (703,876)  (6,564,367)  (1,414,138)
Preferred stock dividends                
Series A, Series E, and Series F preferred stock  (148,995)  (823)  (267,247)  (74,994)
Net loss attributable to common shareholders $(3,254,342) $(704,699) $(6,831,614) $(1,489,132)
Basic and diluted net loss for continuing operations per share $(0.03) $(0.01) $(0.06) $(0.02)
Basic and diluted net loss for discontinued operations per share $0.00  $0.00  $0.00  $0.00 
Basic and diluted net loss per share $(0.03) $(0.01) $(0.06) $(0.02)
Weighted average shares outstanding - basic and diluted  107,427,197   64,368,972   106,148,084   63,791,361 

June 30, 2020

  For the Six Months Ended June 30, 
  2020  2019 
Cash flows from operating activities:        
Net loss $(6,564,367) $(1,414,138)
Add back: loss attributable to discontinued operations  -   187,670 
Adjustments to reconcile net loss to net cash used in operations:        
Depreciation  10,179   4,118 
Amortization of debt discount  6,981   6,943 
Amortization  1,999,914   66,859 
Gain on settlement of liability  -   (122,500)
Stock option compensation expense  78,094   13,111 
Stock issued for services rendered  91,718   - 
Non-cash acquisition fee  275,000   - 
Change in deferred taxes  (254,741)  - 
Provision for bad debt  773,944   29,338 
Changes in operating assets and liabilities:        
Accounts receivable  1,395,191   (129,038)
Prepaid expenses and other current assets  335,100   30,927 
Prepaid services/consulting agreements  215,682   260,000 
Other assets  212,230   (4,703)
Right of use asset and lease liability  (7,485)  - 
Accounts payable  (670,790)  186,087 
Accrued expenses  (847,068)  (21,918)
Accrued interest – related party  4,046   1,168 
Deferred revenues  40,757   (1,260)
Net cash (used in) continuing operations for operating activities  (2,905,615)  (907,336)
Net cash (used in) discontinued operations  -   (162,605)
Net cash (used in) operating activities  (2,905,615)  (1,069,941)
Cash flows from investing activities:        
Purchase of property and equipment  (4,055)  (16,036)
Cash acquired from Wild Sky  1,357,669   - 
Cash paid for website acquisition  -   (8,000)
Net cash provided by (used in) investing activities  1,353,614   (24,036)
Cash flows from financing activities:        
Proceeds from issuance of common stock, net  2,170,562   1,515,200 
Payments of premium finance loan payable  (108,782)  (47,992)
Dividend payments  (55,007)  (149,165)
Principal payments received (funded) for notes receivable  28,597   (64,682)
Note receivable funded  -   (984,242)
Note payable funded  464,800   - 
Net cash provided by financing activities  2,500,170   269,119 
Net increase (decrease) in cash and cash equivalents including cash and cash equivalents classified within assets related to continuing operations  948,169   (824,858)
Net decrease in cash and cash equivalents classified within assets related to discontinued operations  -   (19,347)
Net increase in cash and cash equivalents  948,169   (844,205)
Cash and cash equivalents at the beginning of period  957,013   1,042,457 
Cash and cash equivalents at end of period $1,905,182  $198,252