EFactor Corporation Reports Second Quarter 2013 Results

Revenues Increased 218%

Gross Profit up 198%

News provided by

Aug 13, 2013, 12:00 ET

SAN FRANCISCO, Aug. 13, 2013 /PRNewswire/ -- EFactor Corporation (OTCBB: STDR) a niche social network for entrepreneurs, today announced financial results for the three and six months ended June 30, 2013. The Company also filed its 10-Q with the SEC on August 13, 2013.

Second Quarter 2013 Highlights:

Held 15 entrepreneur live and Webinar events during the quarter and launched series of events with Kevin Harrington of SHARK TANK
Signed agreement with VCorp Filing Services, LLC to provide business formation and filing services and with Orbtalk Ltd., to provide VOIP services to EFactor.com members
Launched www.efactor.com 's's banner advertising platform for businesses looking to connect with EFactor members
Began "Burning Question", a one-week mentoring program with EQmentor to help entrepreneurs gain instant access to certified mentors for urgent issues they face
Built and launched an improved "matching" algorithm directly allowing members to create stronger connections with other members based on mutual interest and skills
Completed acquisition of MCC International – a global public relations and communications agency specializing in the technology and life science verticals

"We are expanding our services and offerings to EFactor members on a continual basis," began Marion Freijsen, EFactor COO. "EFactor.com members are a highly focused niche of the business world which requires distinct services and products to help build and run their businesses. Connections to relevant business partners and education on everything around running a successful company remains the #1 focus of our Company. As such critical connections occur, our members are asking us to bundle additional services and products for them. Adding onto our success with the acquisitions of EQmentor and MCC, we have added many services providers into our resources for our members and we are continually auditing other companies and services to add into our portfolio of entrepreneur-focused 'Alliance Partners'. We are equally excited about the adverting opportunities on EFactor.com and the value such advertisers, like Harvard Business School, recognize in our membership."

Revenues for the three months ended June 30, 2013 were $228,175, up 218% from $71,641 in the same period a year ago. Revenue contributions for advisory services and public relations resulted from the acquisition of MCC and revenues from EQmentor were the primary drivers of revenue growth.

Gross profit was $200,254, an increase of 198% from $67,205 in the second quarter of 2012.

Operating expenses for the second quarter of 2013 were $1,000,029 compared to $641,558 in the same period a year ago. Sales and marketing expenses were $62,883, up 57% year-over-year, resulting from increases in sales and marketing efforts to expand EFactor.com memberships. General and administrative expenses increased to $991,361 from $504,600 in the second quarter of 2012.

Net loss and net loss per share for the three months ended June 30, 2013 were $912,865 and $0.01, respectively, compared to a $630,802 net loss and $0.02 net loss per share in the year ago period. The loss was mainly attributable to the continued development and organizational costs being incurred by the Company as it positions itself to accommodate its member's needs.

The Company had $32,284 in cash and working capital of $457,267 at June 30, 2013. Accounts receivable increased from $20,982 to $146,505 at June 30, 2013.

EFactor secured a line of credit on June 7, 2013 that provides up to $750,000 for a period of twenty four months. The outstanding balance on this line was $300,000 at June 30, 2013.

Cash outflows from operations for the six months ended June 30, 2013 were $616,657, down from $935,574 of outflows in the first six months of 2012. The Company spent $225,001 on capital expenditures in the first six months of 2013 on website and infrastructure investments.

On February 14, 2013, EFactor acquired 100% of MCC International Ltd. ("MCC") in an all common stock transaction. MCC is a public relations and communications agency, based in the United Kingdom, promotes high and emerging technology and science companies, as well as professional service organizations, from entrepreneur start-ups and spin-offs to global consumer brands.

About EFactor Corporation

EFactor Corp., the world's largest entrepreneurial community, provides its members with the people, tools, marketing and expertise to succeed and make real, trustworthy and lasting connections. At the core of EFactor is a strong algorithm that allows members to not only connect with a lot of people, but with the right people. In addition, EFactor provides knowledge, facilitates preparing for funding and resources to reduce business costs, delivered through a unique mix of online social networking and offline domestic and international events.

EFactor has over one million members in 222 countries across 240 industries. It is incorporated in the US and headquartered in San Francisco.

EFactor Corp. is also the parent company to a number of subsidiary service organizations including, a UK communications and public relations agency and a company that delivers matching software for mentors to find the best mentees. For more information, visit http://www.efactor.com.

The EFactor Value
EFactor is a social network designed to support you as your business grows, along every step of your journey. We'll be there to congratulate you every time you win and will coach and inspire you whenever you feel frustrated by setbacks. You can count on us to connect you with the right people for you and your company and offer you the resources and talent that will help you succeed. We are highly motivated everyday people who genuinely care about our team and customers. We cheer each other on and have each other's back. We get to see our ideas come to life every single day. We're entrepreneurs, contributing our expertise to the community.

Company:
Marion Freijsen – Co-Founder/COO
EFactor Corp.
Main: +1 650 380 8280
Email: [email protected]
EFactor email: http://www.EFactor.com/marion

Investor Relations Contact:
John Mattio, Sr. Vice-President
MZ North America
Main: (212)301-7130
Direct: (212) 301-7131
Email: [email protected]

STANDARD DRILLING, INC. D.B.A. EFACTOR CORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

					June 30,		December 31,
			ASSETS		2013		2012

CURRENT ASSETS:
	Cash			$	32,284	$	46,870
	Accounts receivable, net of allowance for doubtful accounts of $2,097 and $2,097 as of June 30, 2013 and December 31, 2012 respectively				146,505		20,982
	Other current assets				16,717		14,469
		Total current assets			195,506		82,321

	Property, website and equipment, net of accumulated depreciation of
	$1,008,707 and $827,619 as of June 30, 2013 and December 31, 2012 respectively				397,191		341,674
	Deferred financing fees				9,617		-
	Goodwill				3,639,494		2,131,516
TOTAL ASSETS				$	4,241,808	$	2,555,511

		LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
	Accounts payable			$	843,207	$	641,534
	Accounts payable - related party				179,696		38,548
	Accrued expenses				788,844		213,220
	Operating line of credit				929,239		625,604
	Deferred revenue				256,654		227,044
	Current portion of other long-term obligation				32,700		-
	Current portion of notes payable - third parties				94,424		101,932
	Convertible notes payable - third parties, net of discount of $75,773 and $88,809 as of June 30, 2013 and December 31, 2012, respectively				411,325		276,809
	Notes payable - related parties, net of discount of $0 and $62,101 as of June 30, 2013 and December 31, 2012, respectively				248,452		163,675
		Total current liabilities			3,784,541		2,288,366

	Other long-term obligation, net of current portion				123,901		-
	Non-current portion of notes payable - third parties				16,116		18,544
		Total non-current liabilities			140,017		18,544

TOTAL LIABILITIES					3,924,558		2,306,910
STOCKHOLDERS' EQUITY
	Preferred stock, $0.001 par value, 10,000,000 shares authorized,
		5,000,000 and -0- issued and outstanding as of June 30,2013 and December 31, 2012, respectively			5,000		5,000
	Common stock, $0.001 par value, 100,000,000 shares authorized,
		95,237,342 and 42,150,024 issued and outstanding at June 30, 2013 and December 31, 2012, respectively			95,237		42,150
	Accumulated other comprehensive income				9,131		-
	Additional paid-in capital				13,984,745		11,938,331
	Accumulated deficit				(13,776,863)		(11,736,880)
		Total stockholders' equity			317,250		248,601

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	4,241,808	$	2,555,511

STANDARD DRILLING, INC. D.B.A. EFACTOR CORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)

				For the three months ended June 30,
				For the three months ended June 30,
				2013		2012

Net revenues			$	228,175	$	71,641

Operating expenses
	Cost of revenue			27,921		4,436
	Sales and marketing			62,883		40,090
	General and administrative			991,361		504,600
	Depreciation and amortization			2,693		92,432
	Gain on forgiveness of liabilities			(84,829)		-
		Total operating expenses		1,000,029		641,558

Loss from operations				(771,854)		(569,917)

Other income (expense):
	Interest expense			(141,011)		(60,885)
		Total other income (expense), net		(141,011)		(60,885)

Net loss			$	(912,865)	$	(630,802)

Basic and diluted net loss per common share			$	(0.01)	$	(0.02)

Weighted average common shares outstanding – basic and diluted				95,211,791		27,651,584
Comprehensive loss
Net loss			$	(912,865)	$	(630,802)
Foreign currency translation adjustment				4,590		-
Comprehensive loss			$	(908,275)	$	(630,802)

STANDARD DRILLING, INC. D.B.A EFACTOR CORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

				For the six months ended June 30,
					2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES:
	Net loss			$	(2,039,983)	$	(1,416,046)
	Adjustments to reconcile net loss to net cash
	used in operating activities:
		Depreciation and amortization			181,088		185,303
		Stock option expense			186,620		93,310
		Amortization of debt discount and deferred financing fees			250,883		97,212
		Stock compensation expense			329,631		-
		Gain on forgiveness of liabilities			(84,829)		-
	Changes in operating assets and liabilities:
			Accounts receivables		(76,323)		(19,767)
			Other current assets		664		1,303
			Accounts payable		223,857		173,459
			Accounts payable - related party		162,662		16,185
			Accrued expenses		219,463		(64,661)
			Deferred revenue		29,610		(1,872)
Net cash used in operating activities				$	(616,657)	$	(935,574)

CASH FLOWS FROM INVESTING ACTIVITIES:
		Cash acquired in reverse merger with Standard Drilling			851		-
		Cash acquired in acquisition of MCC			23,593		-
		Cash paid for acquisition of property, website and equipment			(225,001)		(143,084)
		Net cash used in investing activities		$	(200,557)	$	(143,084)

CASH FLOWS FROM FINANCING ACTIVITIES:
		Proceeds from notes payable			629,208		733,133
		Proceeds from issuance of shares			167,002		337,593
		Repayment of notes payable			(2,713)		(1,036)
		Net cash provided by financing activities		$	793,497	$	1,069,690

NET EFFECT OF EXCHANGE RATES ON CASH					9,131		-

NET DECREASE IN CASH					(14,586)		(8,968)

CASH, BEGINNING BALANCE					46,870		11,259

CASH, ENDING BALANCE				$	32,284	$	2,291

Supplemental Disclosure of Cash Flow Information:
		Cash paid for interest		$	17,878	$	11,553
		Cash paid for income taxes		$	-	$	-
Non-cash Financing Activities:
		Debt discount		$	175,573	$	-
		Shares issued as deferred financing fees		$	9,791	$	-
		Shares issued for conversion of debt		$	214,000	$	130,091