EFactor Group Corp. Reports First Quarter 2014 Results

NEW YORK, May 15, 2014 /PRNewswire/ -- EFactor Group Corp. (OTCQB: EFCT) ("EFactor Group Corp." or "the Company"), owner of EFactor.com, a niche social network for entrepreneurs, content aggregator and provider of resources to entrepreneurs worldwide, today announced financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Highlights

• Membership services revenues increase 10%
• EFactor.com's advertising sales account for approximately $11,900 in the quarter
• MCC International's public relations revenues are key driver for quarter

"We expect 2014 to be a breakout year for us," began Adrie Reinders, CEO of EFactor Group Corp.  "The first quarter of the year allowed us time to restructure EQmentor for growth while also building momentum in our other subsidiaries including MCC International and of course, EFactor.com.   As a management team, we believe the best is yet to come from our service offerings as the entrepreneurial communities in our major markets in the US, the UK, India, China and the Netherlands trend upwards.   This often underserved market segment is populated with individuals who need the services and education we can provide as they look to grow their businesses.  Outside of our core group of operating subsidiaries, we are constantly evaluating add-on businesses and offerings consistent with our mission to benefit our entrepreneur subscriber base, while growing EFactor Group Corp's revenue and earnings for shareholders," Reinders concluded.

EFactor Group Corp. currently generates revenue from four primary sources: (1) member services; (2) advertising; (3) advisory services; and (4) public relations.   For the first three months of the year, combined revenues for the period ended March 31, 2014 were $116,545 compared to $188,762 in the corresponding period a year ago.  Specifically, EQmentor revenues which were $136,562 in the first quarter of 2013 were virtually nonexistent in the first quarter of 2014.  During the first quarter of 2014, EQmentor's service offering was being repositioned for long-term, sustainable growth for a re-launch in the second quarter.  

Despite the temporary setback in EQmentor's quarterly revenue contribution, EFactor Group's subsidiaries and business lines exceeded expectations.   EFactor.com's membership fees were up 10% year over year, adverting sales on EFactor.com totaled approximately $11,900 versus a base of zero in 2013 and public relations revenues from EFactor Group Corp.'s MCC International more than doubled to approximately $92,100.   EFactor Group Corp's operating subsidiaries are built around EFactor's social network of entrepreneurs, EFactor.com.  EQmentor specializes in corporate training and education for leading US corporations, and MCC International is a UK-based public relations and advertising firm serving European companies and startups.    EQmentor and MCC International both complement and serve EFactor.com members.  These subsidiaries also provide membership feed to EFactor.com.

EFactor.com is the Company's flagship operating subsidiary and is one of the leading niche social networks designed to service entrepreneurs with valuable and cost-saving business tools, content, on-line and off line events hosted by well-known business leaders, funding strategies, and an active social network of more than one million entrepreneur-subscribers.   EFactor.com's events have hosted more than 7,500 participants in 2013 and is poised to grow this number in 2014.  Events are scheduled on a regular basis in cities worldwide for EFactor.com members.   In one such New York City event last year, former Shark Tank panelist, Kevin Harrington, hosted a "pitch event" presentation whereby a select group of EFactor.com members competed for an award of $2,500 for the best entrepreneurial business or idea.   EFactor Group Corp. has signed on Mr. Harrington for two additional events in 2014.  Recently, EFactor Group Corp. hosted a Pitch It event in NYC last month and is preparing to host a Pitch It event in Amsterdam on May 21.  EFactor Group Corp. maintains that such live, face-to-face events differentiate the Company from other, purely virtual social networks and allows its members to create real life connections.

In addition, EFactor launched its unique EScore™ system in the last quarter of 2013. EScore™ members can benchmark their skill level and progress in five distinct business categories; Finance, Technology, Sales & Marketing, Leadership and last but not least - Social Value. Through a unique set of questions and tasks, members can not only achieve a score but continue to measure it as they gain experience or bring in valuable members to their team. In addition, EFactor will help each entrepreneur build a strong business based on the information provided through the EScore™ system and unique matching that takes place subsequently.

Operating expenses for the three months ended March 31, 2013 were $2,428,702 compared to $1,147,494 for the three months ended March 31, 2013.  Operating expense included $1,389,533 of non-cash, stock based compensation expense.  On an adjusted, non-GAAP comparison, operating expenses remained constant year-over-year.

Interest expense increased to $987,934 for the three month period ended March 31, 2014, compared to $168,386 for the three month period ended March 31, 2013.  Interest expenses includes non-cash amortization of $939,686 for share issuance expense to satisfy debtholder enhancements as part of the consideration for entering into these investments. The Company expects to repay or convert into common stock the majority of its outstanding notes subject to the raising further capital and increasing revenues over the course of the next 18 months.

Net loss increased to $3,369,977 from $1,127,118, for the three month period ended March 31, 2014.  The increase in net loss compared to the prior year period is primarily a result of non-cash, stock-based compensation and amortization of debt.  

EARNINGS CONFERENCE CALL

EFactor Group Corp's management team will hold a conference call with investors and analysts on Monday, May 19, 2014 at 10:00 a.m. US Eastern Time to discuss the Company's first quarter 2014 financial results.    

A replay of the call will be available beginning two hours after the call through midnight May 26 2014 by telephone at +1-877-870-5176 (US Domestic) or +1-858-384-5517 (International). The conference ID number is 13582646. This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this http://public.viavid.com/index.php?id=109239 or at ViaVid's website at http://www.viavid.com, where the webcast can be accessed through May 18, 2015.

About EFactor Group Corp.

EFactor Group Corp. (OTCQB: EFCT) has at its core EFactor.com, a niche social network for entrepreneurs. EFactor.com provides its members with the people, tools, marketing and expertise to succeed and make real, trustworthy and lasting connections. At the core of the network lies a strong algorithm that allows members to not only connect with a lot of people, but with the right people. In addition, EFactor.com provides knowledge, facilitates preparing for funding and resources to reduce business costs, delivered through a mix of online social networking and offline domestic and international events.

EFactor.com has over one million members in 222 territories across 240 industries. It is incorporated in Nevada and headquartered in San Francisco. For more information, visit http://www.efactor.com

EFactor Group Corp. also has various subsidiary service organizations including a UK communications and public relations agency and a company that delivers matching software for mentees to get matched to the perfect mentor.  For more information about EFactor Group Corp. please visit, http://efactorgroup.com/

The EFactor.com Value – The Entrepreneurs Wingman

EFactor.com 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.

See our Company Video here:  http://ir.efactorgroup.com/videos/view/4/efactor-video

Forward-Looking Statements:

Safe Harbor: This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of EFactor Corp., to be materially different from the statements made herein.

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

Investor Relations Contact:
John Mattio
Main: (212)301-7130
Direct: (212) 301-7131
Email: [email protected]

- FINANCIAL TABLES -

SOURCE EFactor Group Corp.