Attached files
| file | filename |
|---|---|
| 8-K - FORM 8K CURRENT REPORT - LEFT BEHIND GAMES INC. | lbg8k022411no1.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
MEDIA CONTACT:
INVESTOR RELATIONS CONTACT:
Angela Dalmas
Norma Mortensen
(916) 990-3447 direct
(951) 894-6597 ext 334
Angela@LBGames.com
Norma@LBGames.com
LEFT BEHIND GAMES REPORTS RECORD EARNINGS AND
REVEALS SNAPSHOT OF FUTURE PLANS
LOS ANGELES – February 23, 2011 – Left Behind Games Inc. (OTC: LFBG) today reported record revenues of $1,136,266 and a net profit of $124,323 for the three months ended December 31, 2010, compared to revenues of $52,868 and a net loss of $7,593,609 a year ago, respectively, making LB Games® the first public company to profitably offer Christian video games.
LB Games CEO, Troy Lyndon, says, “We are pleased to report operational profitability has resulted from increased interest in our products because of our 2010 expansion; the most significant in our history.”
LB Games’ product line grew in 2010 from 7 to 11 products, releasing 4 new Christian games in 2010 including Praise Champion, the highest-quality Christian Karaoke game, King Solomon’s Trivia Challenge, the highest-quality Bible Trivia game, Left Behind 3: Rise of the Antichrist, based upon the New York Times #1 best-selling novel series by Tim LaHaye and Jerry Jenkins, which has sold more than 65 million books worldwide, and Charlie Church Mouse: SuperPak and 3D Bible Adventures, based upon the popular television character.
CEO Lyndon, continues, “We supported the release of these 4 new titles with our largest national advertising campaign in five years. This product expansion was made possible as a result of strategic relationships resulting from our acquisitions of the Charlie Church Mouse brand and Cloud 9 Games’ assets.”
Today, Left Behind Games also announced it has taken steps to facilitate $10 million dollars in capital to expand its product line, enter new markets and diversify onto new platforms. Most notably, LB Games further announced its anticipated release of the first high-quality scripture memorization game, currently titled King Solomon’s Scripture Challenge, which is due out in later 2011.
Among other highlights of its quarterly filing, LB Games reported a reduction in accounts payable and accrued expenses of $976,542 in the past 12 months and an increase in shareholder equity of $975,394 in the past 12 months.
About Left Behind Games Inc.
Left Behind Games Inc., dba LB Games® and dba Inspired Media Entertainment, is the only publicly-traded exclusive publisher of Christian video game software. They produce quality interactive entertainment products that perpetuate positive values and appeal to faith-based and mainstream audiences. For more information, go to www.LBGames.com.
# # #
LB GAMES, LEFT BEHIND 3: RISE OF THE ANTICHRIST, CHARLIE CHURCH MOUSE, PRAISE CHAMPION AND KING SOLOMON’S TRIVIA CHALLENGE are trademarks of Left Behind Games Inc. in the U.S. and other countries. All rights reserved.
LEFT BEHIND is a registered trademark of Tyndale House Publishers, Inc. in the U.S. and other countries. All rights reserved.
All other trademarks are the property of their respective holders. All rights reserved.
Caution Concerning Forward-Looking Statements
This release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or expectations of Left Behind Games. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that results may differ materially from such statements.
LEFT BEHIND GAMES INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
| December 31, |
| March 31, |
|
| 2010 |
| 2010 |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash | $ | 138,329 | $ | 56,677 |
Restricted cash |
| 30,000 |
| 30,000 |
Accounts receivable |
| 204 |
| 6,915 |
Inventories, net |
| 126,584 |
| 148,058 |
Prepaid royalties |
| 6,750 |
| 30,426 |
Prepaid expenses and other current assets |
| 89,191 |
| 6,048 |
Total current assets |
| 391,058 |
| 278,124 |
Property and equipment, net |
| 83,643 |
| 68,290 |
Note receivable |
| 67,407 |
| 101,111 |
Intellectual property, net |
| 52,823 |
| 85,938 |
Other assets |
| 35,927 |
| 5,927 |
Total assets | $ | 630,858 | $ | 539,390 |
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable and accrued expenses | $ | 1,128,919 | $ | 1,847,450 |
Payroll liabilities payable |
| 250,236 |
| 161,104 |
Convertible debt |
| 74,063 |
| 280,000 |
Notes payable, net of discounts |
| 39,828 |
| 31,200 |
Notes payable in default |
| -- |
| 177,338 |
Deferred revenue |
| 103,488 |
| 100,401 |
Total current liabilities |
| 1,596,534 |
| 2,597,493 |
Commitments and Contingencies |
|
|
|
|
Stockholders' Deficit |
|
|
|
|
Series A preferred stock, $0.001 par value; 3,586,245 shares authorized, |
|
|
|
|
issued and outstanding as of December 31, 2010 and March 31, 2010, respectively; |
|
|
|
|
liquidation preference of $188,500 |
| 3,586 |
| 3,586 |
Series B preferred stock, $0.001 par value; 16,413,755 shares authorized; |
|
|
|
|
7,890,529 and 11,040,929 shares issued and outstanding as of December 31, 2010 and March 31, 2010, respectively; |
| 7,891 |
| 11,041 |
Series C preferred stock, $0.001 par value, 10,000 authorized, |
| 10 |
| 10 |
issued and outstanding as of December 31, 2010 and March 31, 2010, respectively; |
|
|
|
|
Series D convertible preferred stock, 1,000 shares authorized, 109 and 9 |
| -- |
| -- |
shares issued and outstanding as of December 31, 2010 and March 31, 2010, respectively; |
|
|
|
|
Common stock, par value $0.001 per share; 5,000,000,000 shares |
|
|
|
|
authorized; 4,682,633,586 and 2,279,968,311 shares issued and outstanding |
|
|
|
|
as of December 31, 2010 and March 31, 2010, respectively |
| 4,682,634 |
| 2,280,419 |
Treasury stock |
| 24,500 |
| 24,500 |
Additional paid-in capital |
| 58,198,222 |
| 55,486,725 |
Accumulated deficit |
| (63,882,519) |
| (59,864,384) |
|
| (965,676) |
| (2,258,103) |
Total liabilities and stockholders' deficit | $ | 630,858 | $ | 539,390 |
The accounting notes are an integral part of these unaudited condensed consolidated financial statements; they are available with the SEC filings at sec.gov
2
LEFT BEHIND GAMES INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
| Three Months |
| Three Months |
| Nine Months |
| Nine Months |
|
| Ended |
| Ended |
| Ended |
| Ended |
|
| December 31, |
| December 31, |
| December 31, |
| December 31, |
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
|
|
|
|
|
|
|
|
|
Net revenues | $ | 1,136,266 | $ | 52,868 | $ | 1,359,136 | $ | 95,264 |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of sales – product costs |
| 73,219 |
| 11,372 |
| 208,407 |
| 38,279 |
Cost of sales – intellectual property costs |
| 56,632 |
| 9,418 |
| 59,203 |
| 16,609 |
Gross profit |
| 1,006,415 |
| 32,078 |
| 1,091,526 |
| 40,376 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
| 424,883 |
| 323,474 |
| 677,136 |
| 463,986 |
Consulting |
| 76,532 |
| 3,513,513 |
| 2,001,305 |
| 6,612,070 |
Depreciation and amortization |
| 43,352 |
| 6,403 |
| 65,487 |
| 22,806 |
Wages and salaries |
| 269,128 |
| 3,727,831 |
| 864,615 |
| 3,948,004 |
Product development |
| 65,121 |
| 26,967 |
| 1,511,252 |
| 76,928 |
|
|
|
|
|
|
|
|
|
Total operating expenses |
| 879,016 |
| 7,598,188 |
| 5,119,795 |
| 11,123,794 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
| 127,399 |
| (7,566,110) |
| (4,028,269) |
| (11,083,418) |
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
|
Interest and other debt expenses |
| 3,076 |
| 27,499 |
| (12,929) |
| 525,971 |
|
|
|
|
|
|
|
|
|
Net profit (loss) |
| 124,323 |
| (7,593,609) |
| (4,015,340) |
| (11,609,389) |
|
|
|
|
|
|
|
|
|
Basic and diluted profit (loss) per common share | $ | 0.00 | $ | (0.00) | $ | (0.00) | $ | (0.01) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
| 4,248,762,939 |
| 1,545,754,982 |
| 3,355,805,591 |
| 905,605,400 |
The accounting notes are an integral part of these unaudited condensed consolidated financial statements; they are available with the SEC filings at sec.gov
3
LEFT BEHIND GAMES INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| Nine Months |
| Nine Months |
|
| Ended |
| Ended |
|
| December 31, |
| December 31, |
|
| 2010 |
| 2009 |
Cash flows from operating activities: |
|
|
|
|
Net loss | $ | (4,018,135) | $ | (11,609,389) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
| 65,487 |
| 22,806 |
Recognition of deferred stock compensation |
| -- |
| 100,025 |
Stock based compensation - consultants |
| 199,904 |
| 480,603 |
Stock based compensation - employees and directors for services |
| -- |
| 3,657,100 |
Interest paid in common stock |
| -- |
| -- |
Change in fair value of warrant |
| -- |
| 2,023 |
Convertible debt issued for services |
| 3,345,780 |
| 5,446,000 |
Amortization of debt discount |
| 28 |
| 336,499 |
Provision for notes receivable reserve |
| 33,704 |
| -- |
Issuance of shares for antidilution protection |
| 103,742 |
| -- |
Beneficial conversion on note payable conversions |
| -- |
| 131,251 |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
| 6,711 |
| (36,595) |
Inventories |
| 30,474 |
| 18,473 |
Note receivable |
| -- |
| (39,589) |
Prepaid expenses |
| (59,467) |
| 3,923 |
Other assets and prepaid royalties |
| (30,000) |
| 3,635 |
Accounts payable and accrued expenses |
| (311,444) |
| 96,169 |
Deferred income – product sales |
| 3,087 |
| 1,336 |
Net cash used in operating activities |
| (630,129) |
| (1,385,730) |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases of property and equipment |
| (47,725) |
| (2,457) |
Net cash used in investing activities |
| (47,725) |
| (2,457) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from the issuance of notes payable |
| 25,000 |
| 25,000 |
Borrowings from related party |
| -- |
| 2,089 |
Proceeds from the issuance of common stock |
| 734,506 |
| 1,578,550 |
Net cash provided by financing activities |
| 759,506 |
| 1,605,639 |
|
|
|
|
|
Net (decrease) increase in cash |
| 81,652 |
| 217,452 |
Cash at beginning of period |
| 56,677 |
| 7,778 |
Cash at end of period | $ | 138,329 | $ | 225,230 |
The accounting notes are an integral part of these unaudited condensed consolidated financial statements; they are available with the SEC filings at sec.gov
4
LEFT BEHIND GAMES INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| Nine Months |
| Nine Months |
|
| Ended |
| Ended |
|
| December 31, |
| December 31, |
|
| 2010 |
| 2009 |
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
|
Interest | $ | -- | $ | -- |
|
|
|
|
|
Income taxes | $ | -- | $ | -- |
|
|
|
|
|
Supplemental disclosures of non-cash and investing and financing information: |
|
|
|
|
|
|
|
|
|
Issuance of common stock under license agreement | $ | -- | $ | 137,500 |
|
|
|
|
|
Exchange of equipment for settlement of accounts payable | $ | -- | $ | 503 |
|
|
|
|
|
Conversion of preferred B stock into common stock | $ | 3,150 | $ | -- |
|
|
|
|
|
Discount on convertible notes payable | $ | 25,000 | $ | -- |
|
|
|
|
|
Conversion of notes and accounts payable into common stock | $ | 854,175 | $ | 1,754,453 |
|
|
|
|
|
Common stock issued for inventory | $ | 9,000 |
| -- |
Return of common stock as treasury shares | $ | -- | $ | 24,500 |
The accounting notes are an integral part of these unaudited condensed consolidated financial statements; they are available with the SEC filings at sec.gov
5