EFactor Group Corp. Reports Third Quarter 2013 Results

SAN FRANCISCO, Nov. 14, 2013 /PRNewswire/ -- (OTCBB:STDR or STDRD, soon to be EFCT) EFactor Group Corp. ("EFactor Corp." or "the Company"), owner of the EFactor.com, niche social network for entrepreneurs, content aggregator and provider of resources to entrepreneurs worldwide, today announced financial results for the three and nine months ended September 30, 2013.

Third Quarter 2013 Highlights

• Revenues increased 48% to $207,022
• Gross margin increased from 26.2% in Q3 2012 to 70.5% in Q3 2013
• G&A expenses dropped 56% to $690,682
• Reduced operating loss by approximately $1.0 million compared to  Q3 2012 and approximately $600,000 year-over-year
• Completes reverse split of Standard Drilling Shares and receives approval for name change to EFactor Group Corp.
• Held 8 live Entrepreneur and 9 Webinar events during the quarter including a "Pitch Event" with Kevin Harrington in NYC

"This quarter was focused on a number of significant public market milestones," began Marion Freijsen, EFactor COO. "We were successful in the combination of efforts to reverse split the Standard Drilling shares, change our name to EFactor Group Corp., obtain our trading ticker, EFCT, and launch the investor relations section of our Website, efactorgroup.com.  At the same time, we continued to host a variety of events for our focused niche of entrepreneurs requiring distinct services and products to help build and run their businesses and revamped our flagship Website, EFactor.com.  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 evaluating 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."

EFactor generates revenue from four primary sources: (1) member fees; (2) sponsorships; (3) advisory services; and (4) public relations services. Management has invested in technology and personnel to grow revenues and cash flows from each business source.

Revenue for the three months ended September 30, 2013 was $207,022, an increase of 48% compared to $139,819 in the corresponding period a year ago. Advisory services and public relations accounted for $175,225 of total revenues in the third quarter of 2013 compared to $492 in the third quarter of 2012.

Cost of goods fell 41% to $61,141 in the third quarter of 2013. Gross profit and gross margin were $145,881 and 70.5% compared to $36,698 and 26.2% in the third quarter of 2012, respectively. The reason for the substantial improvement in gross profit and gross profit margin was the utilization of more of the Company's internal resources for these sundry platforms, which is more cost efficient than going to the outside.

Operating expenses for the three months ended September 30, 2013 fell 55% to $819,004. General and administrative expenses were $690,682 compared to $1,568,262 in the third quarter of 2012, a reduction of 56%. The primary reason for the year-over-year decline in general and administrative expenses was a reduction in non-cash stock-based compensation expenses. EFactor had an operating loss of $611,982 compared to a loss of $1,677,178 in the same period a year ago.

Net loss attributable to common shareholders was $1,784,773, up slightly from $1,754,733 in the third quarter of 2012. The Company recorded a $1,026,859 non-cash loss on extinguishment of debt in the third quarter of 2013. The net loss per share was $0.74 in the third quarter of 2013, an improvement from $2.30 per share in the prior year period.

Cash outflows from operations for the nine months ended September 30, 2013 was $1,177,391 compared to $1,244,179 in the first nine months of 2012. On June 7, 2013, the Company obtained a line of credit from an accredited investor that allows EFactor to borrow up to $750,000 over a 24-month period from the date of the agreement. The Company had $275,000 available under this line of credit at September 30, 2013.

The Company invested $313,820 on capital expenditures in 2013 compared to $237,609 in the same period a year ago. Total assets and shareholders' equity were $4,791,689 and $6,569 at September 30, 2013.

About EFactor Group Corp.

EFactor Group Corp. 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 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 mentors to find the best mentees. 

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.

Forward-Looking Statements

Any statements in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those discussed from time to time in our Securities and Exchange Commission filings. We undertake no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.

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]

SOURCE EFactor Group Corp.