LONGWOOD, Fla., April 10, 2018 (GLOBE NEWSWIRE) -- Spectrum Global Solutions, Inc. (f/k/a Mantra Venture Group, Ltd.) (the "Company") (OTC:SGSI), reported financial results for the 7 month transition period for the new financial year ended December 31, 2017. Roger Ponder, CEO of the Company stated, “Revenue exceeded $5.8 million for the 7-month transition period of our new fiscal year, despite the negative impact of two hurricanes on our Florida and Puerto Rico operations last fall. Revenue in our AW Solutions subsidiary exceeded $10 Million for the calendar year. Results of our newly acquired ADEX Corp subsidiary are not reflected in these numbers. However, revenues for that operation exceeded $20 Million. Our pipeline of sales opportunities continues to grow, putting us in a great position to show strong year-over-year organic growth in 2018."
Mr. Ponder continued: “In addition to organic growth of current operations, we continue to vigorously pursue strategic, accretive acquisition opportunities to further improve long-term shareholder value.”
7 Month Transition Period 2017 Financial Results:
Revenue for the 7 months ended December 31, 2017 increased by $5.9 million, compared to $0.0 million for the comparable 7 months of 2016. This was the result of increased revenue derived from our AW Solutions acquisition.
Gross profit was 13% for the year ended December 31, 2017 and 0% for 2016.
The Company had a net loss attributable to common stockholders of $(1.8) million for the seven months ended December 31, 2017 compared to a net loss of $(0.9) million for the comparable period of 2016. The increase in net loss during the seven months ended December 31, 2017 compared to the comparable period of 2016 resulted from an increase in selling general and administrative expenses of $0.3 million and an increase in salaries and wages of $1.3 million which were offset by an increase in gross margin of $0.7 million. The increases in salaries and wages and selling, general and administrative expenses were a result of our acquisition of AW Solutions subsidiary in April 2017.
Our loss from operations of our AW Solutions subsidiary was only $0.1 million, and is unadjusted for the impact from the two hurricanes. Our loss from operations included our corporate overhead of $1.1 million, which included accounting and legal fees related to the acquisition of AW Solutions and legal fees related to our redomicle of the company in the United States from Canada.
Our operating results for the 7 month transition period ended December 31, 2017 and 2016 are summarized as follows:
| Seven month transition period Ended December 31, 2017 | Seven month transition period Ended December 31, 2016 | |||||||
| Statement of Operations Data: | ||||||||
| Revenues | $ | 5,872,457 | $ | 0 | ||||
| Gross profit | 769,105 | 0 | ||||||
| Operating expenses | 1,969,698 | 269,677 | ||||||
| Loss from operations | (1,200,593 | ) | (269,677 | ) | ||||
| Total other income (expense) | (631,543 | ) | (656,429 | ) | ||||
| Net Income (loss) attributable to common stockholders | (1,832,136 | ) | (926,106 | ) | ||||
| Balance sheet data for transition period ended December 31, 2017: | ||||||||
| Cash | $ | 28,893 | ||||||
| Accounts receivable, net | 1,473,377 | |||||||
| Total current assets | 1,543,333 | |||||||
| Goodwill and intangible assets, net | 2,872,917 | |||||||
| Total assets | 4,505,340 | |||||||
| Total current liabilities, excluding derivative liabilities | 6,182,628 | |||||||
| Derivative liabilities | 4,749,712 | |||||||
| Stockholders' (deficit) equity | (6,427,000 | ) | ||||||
About Spectrum Global Solutions:
Spectrum Global Solutions operates through its subsidiaries AW Solutions, ADEX Corp and Mantra Energy Alternatives. The Companies subsidiaries AWS Solutions and ADEX Corp are leading providers of telecommunications engineering, infrastructure deployment and staffing services and solutions across the United States, Canada, Puerto Rico, Guam and Caribbean. The Company’s subsidiary Mantra Energy Alternatives develops electrochemical technologies designed to make profitable the reducing of greenhouse gas emissions. For more information about the Company and its technologies visit the Company’s public filings at SEC.gov.
Forward Looking Statements
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.
CONTACT:
Investor Relations
Spectrum Global Solutions, Inc.
561-672-7068