Usell.com, Inc. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013
November 20, 2013 at 06:31 pm IST
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usell.com, Inc. reported earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported revenues of $1,636,386, up 124% from revenues of $729,297 in the third quarter of 2012. Operating loss was $843,100, a $1,605,887 improvement from operating loss of $2,448,987 in the third quarter of 2012. Cash operating loss of $225,000, a $475,000 improvement from cash operating loss of $700,000 in the third quarter 2012. The increase in revenue is primarily due to increased marketing spend, improved marketing efficiency and an increase in trading partners. The decrease in operating loss was primarily due to improved marketing efficiency and increased revenue. The company's net loss increased by $0.5 million, from a loss of $0.4 million in the third quarter of 2012 to a loss of $1.0 million in the third quarter of 2013. The resulting LPS is $0.01, as compared to $0.01 a year earlier. Net loss and EPS results from the third quarter of 2012 include a positive change in fair value of derivative liability relating to conversion feature of Series A preferred stock of $2.0 million.
For the first nine months, revenues were $3.9 million, a 150% increase from $1.6 million in the first nine months of 2012. Operating loss improved by $1.6 million, from $5.2 million in the first nine months of 2012 to $3.6 million in the first nine months of 2013. Of note, the cash operating loss for the first nine months of 2013 improved by $1.1 million, from $2.5 million in the first nine months of 2012 to $1.4 million in the first nine months of 2013. Net loss improved by $4.0 million, from a loss of $7.7 million in the first nine months of 2012 to a loss of $3.6 million in the first nine months of 2013. The resulting LPS is $0.06, as compared to $0.38 a year earlier. Net loss and EPS results from the first nine months of 2012 include a negative change in fair value of derivative liability relating to conversion feature of Series A preferred stock of $2.3 million.
PhoneX Holdings, Inc. is engaged in building the cloud-based software-as-a service solution for the wholesale exchange of pre-owned mobile devices. The Company works with mobile carriers and mobile handset distributors to facilitate global commerce related to pre-owned mobile devices. The Company operates through two models: Proprietary Trading Model and Platform Partnership Model. Its Proprietary Trading Model, through which it purchases devices utilizing its own balance sheet via its subsidiary We Sell Cellular LLC. Its Platform Partnership Model, through which it enables its partners to license its software via its subsidiary PhoneX, Inc. Through these licensing agreements, the Company enables mobile carriers and mobile handset distributors to increase selling prices and selling velocity by using a specialized, automated platform where wholesale buyers of mobile devices can purchase inventory on demand.