Solbright Group Inc. Reports Second Quarter Fiscal 2018 Financial Results
Quarterly Revenue Increases 7X Year Over Year to $3.2 Million & Operating Cash Flow Remains Positive Through First Six Months of Combined Operations Following SolBright Acquisition
NEWARK, N.J., January 17, 2018 (Newswire.com) - Solbright Group, Inc. (OTC: SBRT), an industrial automation and energy management company providing Industrial Internet of Things (IoT) solutions that help commercial and industrial facilities increase efficiency and reduce costs, today announced financial results for the second quarter of fiscal 2018 ended Nov. 30, 2017.
Revenue for the second quarter of fiscal year 2018 was $3,291,100, an increase of over 700 percent compared to revenue of $389,676 in the second quarter of fiscal year 2017. The increase in top-line revenue is primarily due to the growth in the Company’s customer base and revenue recognized from the SolBright acquisition completed in May 2017. The Company posted a loss from operations of $1,948,205 in the period, which includes $820,143 of stock-based compensation relating to the settlement of debt and services.
"As we have completed internalizing the SolBright acquisition, we are very pleased with the growth in revenues that we continue to experience in our Services business year over year, and we expect to maintain this upward trajectory through the remainder of this fiscal year and beyond," said CEO Terrence DeFranco. "Commercial and industrial facilities owners — particularly in retail, health care, education, specialty agriculture and data centers — can benefit from the bundling of our robust Industrial Internet of Things (IIoT) platform for energy management and predictive maintenance with our solar and LED lighting installations by lowering energy consumption and maintenance costs, extending asset life, increasing efficiency and productivity and realizing their sustainability goals. As we continue to execute on the expansion of our Services business and begin to introduce our IoT solutions to our growing customer base, we believe that we will successfully transform our Company and establish Solbright as a leader in the IIoT and energy services markets."
Total operating expenses were $1,550,217 compared to $634,856 in the second quarter of fiscal 2017. The increase was primarily due to the increase in personnel related to the SolBright acquisition. The operating loss for the second quarter of fiscal 2018 was $1,948,205 compared to an operating loss of $503,936 for the second quarter of fiscal 2017. Other income/expenses included interest expense of $537,075 and non-cash charges for amortization of debt discount and deferred finance costs and loss on the settlement of a liability, totaled $310,148 and $101,223, respectively.
The net loss was $2,896,651 or ($0.12) per basic and diluted share, for the second quarter of fiscal 2018 compared to a net loss of $509,151, or ($0.04) per basic and diluted share, for the second quarter of fiscal 2017. Basic and diluted per share results are based on weighted average shares outstanding of 23,663,668 and 13,728,834 for the second quarters of fiscal 2018 and fiscal 2017, respectively. Please visit www.sec.gov to view our second quarter results on Form 10Q or visit the Company’s Investor Relations page at www.solbrightgroup.com.
About Solbright Group, Inc.:
Solbright Group, Inc. is an industrial automation and energy management company providing Industrial Internet of Things (IoT) solutions that help commercial and industrial facilities increase efficiency and reduce cost. We deliver technology solutions for building and machine automation and energy conservation that complement our energy conservation services such as LED lighting retrofits, HVAC system retrofits and solar engineering, procurement and construction services. Our focus is towards the development and commercialization of an Internet of Things software platform that supports Big Data applications that complement our energy management services. More information is available at www.solbrightgroup.com.
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to the acquisition and integration of the Solbright assets, risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to pre-clinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Solbright Investor Relations
Source: Solbright Group, Inc.