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SRAX Announces Non-Reliance on Previously Issued Financial Statements
Social Reality, Inc. (NASDAQ: SRAX), a digital marketing and consumer data management technology company, today announced that on April 7, 2019, management of Social Reality, Inc. (the “Company”) concluded and the audit committee of the Company has concurred that the Company’s previously issued quarterly and year-to-date unaudited consolidated financial statements for March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018 and that its audited consolidated financial statements for the year ending December 31, 2017 should no longer be relied upon. Similarly, related press releases, earnings releases, and investor communications describing the Company’s financial statements for these periods should no longer be relied upon. The errors identified are all non-cash and primarily related to the Company’s classification of certain outstanding warrants with provisions that allow the warrant holder to force cash redemption under certain circumstances.
Based on its preliminary assessment, the Company is providing the following estimates regarding the aggregate impact of these errors on consolidated total current liabilities, total liabilities, equity, other income, net income (loss) and income (loss) per share, calculated in accordance with accounting principles generally accepted in the U.S., for each of the periods presented:
SOCIAL REALITY, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 |
|||||||
(Unaudited) |
|||||||
AS |
Restated |
||||||
YTD |
YTD |
||||||
2018 |
Adjustments |
2018 |
|||||
Revenues |
$ 8,823,592 |
$ 8,823,592 |
|||||
Cost of revenue |
2,902,179 |
2,902,179 |
|||||
Gross profit |
$ 5,921,413 |
$ 5,921,413 |
|||||
Loss from operations |
$ (8,492,866) |
$ (8,492,866) |
|||||
Other income (expense) |
|||||||
Total interest expense |
$ (2,772,448) |
$ (2,772,448) |
|||||
Loss on repricing of Series A warrants |
$ – |
$ – |
|||||
Accretion of put warrants |
$ 800,000 |
$ 800,000 |
|||||
Accretion of debenture warrants |
$ 800,000 |
$ 800,000 |
|||||
Accretion of Leapfrog warrants |
$ 600,000 |
$ 600,000 |
|||||
Loss (Gain) on Sale of Fixed Assets |
$ 23,978,389 |
$ 23,978,389 |
|||||
Other Income |
$ 21,210,439 |
$ 2,200,000 |
$ 23,410,439 |
||||
Net Income (loss) |
$ 12,717,573 |
$ 2,200,000 |
$ 14,917,573 |
||||
Net (loss) income pershare, basic |
$ 1.59 |
$ 1.86 |
|||||
Net (loss) income pershare, diluted |
$ 1.59 |
$ 1.86 |
|||||
Weighted average shares outstanding, basic |
8,008,717 |
– |
8,008,717 |
||||
Weighted average shares outstanding, diluted |
8,008,717 |
– |
8,008,717 |
||||
SOCIAL REALITY, INC. |
|||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
YEAR ENDED DECEMBER 31, 2017 |
|||||
AS |
Restated |
||||
Full Year |
Full Year |
||||
2017 |
Adjustments |
2017 |
|||
Revenues |
$ 23,348,714 |
$ 23,348,714 |
|||
Cost of revenue |
9,328,893 |
9,328,893 |
|||
Gross profit |
$ 14,019,821 |
$ 14,019,821 |
|||
Loss from operations |
$ (3,843,679) |
$ (3,843,679) |
|||
Other income (expense) |
|||||
Total interest expense |
$ (2,815,203) |
$ (2,815,203) |
|||
Loss on repricing of Series A warrants |
$ – |
$ (100,000) |
$ (100,000) |
||
Accretion of put warrants |
$ 500,000 |
$ 500,000 |
|||
Accretion of debenture warrants |
$ (700,000) |
$ (700,000) |
|||
Accretion of Leapfrog warrants |
$ (1,500,000) |
$ (1,500,000) |
|||
Loss (Gain) on Sale of Fixed Assets |
$ – |
$ – |
|||
Other Income |
$ (2,815,203) |
$ (1,800,000) |
$ (4,615,203) |
||
Net Income (loss) |
$ (6,658,882) |
$ (1,800,000) |
$ (8,458,882) |
||
Net (loss) income pershare, basic |
$ (0.81) |
$ (1.02) |
|||
Weighted average shares outstanding, basic |
8,253,851 |
– |
8,253,851 |
||
SOCIAL REALITY, INC. |
|||||
CONDENSED AND CONSOLIDATED BALANCE SHEET |
|||||
SEPTEMBER 30, 2018 |
|||||
(Unaudited) |
|||||
September 30 |
September 30 |
||||
2018 |
2018 |
||||
As Reported |
Adjustments |
As Restated |
|||
Total assets |
34,341,324 |
– |
34,341,324 |
||
Liabilities and stockholders’ equity |
|||||
Current liabilities: |
|||||
Accounts payable and accrued expenses |
2,475,229 |
2,475,229 |
|||
Leapfrog warrant liability |
– |
1,000,000 |
1,000,000 |
||
Warrant liability – Series A |
– |
1,300,000 |
1,300,000 |
||
Debenture warrant liability |
– |
1,600,000 |
1,600,000 |
||
Total current liabilities |
2,475,229 |
3,900,000 |
6,375,229 |
||
Secured convertible debentures, net |
2,943,109 |
– |
2,943,109 |
||
Total liabilities |
5,418,338 |
3,900,000 |
9,318,338 |
||
Total stockholders’ equity |
28,922,886 |
(3,900,000) |
25,022,886 |
||
Total liabilities and stockholders’ equity |
34,341,224 |
– |
34,341,224 |
SOCIAL REALITY, INC. |
||||||
CONDENSED AND CONSOLIDATED BALANCE SHEET |
||||||
DECEMBER 31, 2017 |
||||||
Restated |
||||||
December 31, |
December |
|||||
2017 |
Adjustments |
2017 |
||||
Total assets |
23,605,699 |
– |
23,605,699 |
|||
Liabilities and stockholders’ equity |
||||||
Current liabilities: |
||||||
Accounts payable and accrued expenses |
5,010,815 |
5,010,815 |
||||
Leapfrog warrant liability |
1,700,000 |
1,700,000 |
||||
Warrant liability – Series A |
2,100,000 |
2,100,000 |
||||
Debenture warrant liability |
2,500,000 |
2,500,000 |
||||
Total current liabilities |
5,010,815 |
6,300,000 |
11,310,815 |
|||
Secured convertible debentures, net |
1,711,146 |
– |
1,711,146 |
|||
Total liabilities |
6,721,961 |
6,300,000 |
13,021,961 |
|||
Total stockholders’ equity |
16,883,738 |
(6,300,000) |
10,583,738 |
|||
Total liabilities and stockholders’ equity |
23,605,699 |
– |
23,605,699 |
Since the Company has not yet fully completed its review, the estimates regarding the impact set forth above are preliminary and remain subject to change.
In connection with the restatement, management has determined that a material weakness related to the accounting for financing transactions in the Company’s internal control over financial reporting existed for the periods from March 31, 2017 through December 31, 2018. The Company’s chief executive officer and chief financial officer have concluded that the Company’s disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2017 through December 31, 2018, and the Company’s management has concluded that its internal control over financial reporting was not effective as of December 31, 2018.
The Company anticipates that it will file amended Quarterly Reports on Form 10-Q for the periods ended March 31, 2018, June 30, 2018 and September 30, 2018, to amend and restate its financial condition and financial results for the affected periods as soon as practicable.
About SRAX
Social Reality, Inc. (NASDAQ: SRAX) is a digital marketing and consumer data management technology company. SRAX’s technology delivers the tools to unlock data to reveal brands core consumers and their characteristics across marketing channels. Through its blockchain identification graph technology platform, BIGtoken, SRAX has developed a consumer-managed data marketplace where people can own and earn from their data thereby providing everyone in the Internet ecosystem choice, transparency, and compensation. SRAX’s technology and tools deliver a digital competitive advantage for brands in the CPG, automotive, investor relations and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.
SOURCE SRAX
Fintech PR
DAZN ADVANCES GLOBAL EXPANSION WITH ACQUISITION OF FOXTEL, A LEADING AUSTRALIAN SPORTS AND ENTERTAINMENT MEDIA GROUP
- Milestone deal for DAZN’s position as the global home of sport.
- This acquisition establishes DAZN’s sports platform in Australia, one of the world’s most attractive sports markets.
- Foxtel Group will leverage DAZN’s global reach, industry-leading technology and extensive content portfolio to further enhance the viewing experience for Australian sports fans.
LONDON, NEW YORK, and SYDNEY, Dec. 22, 2024 /PRNewswire/ — DAZN, a world-leading sports entertainment platform, has today announced an agreement to acquire Foxtel Group (‘Foxtel’) from its majority shareholder News Corp and minority shareholder Telstra at an enterprise value of US$2.2 billion, subject to regulatory approval.
The acquisition establishes DAZN as a leader in sports entertainment in Australia – a highly attractive sports market – while also expanding DAZN’s global footprint and enhancing the group’s standing as the global home of sport. The addition of Foxtel to DAZN brings the Group’s pro-forma revenues towards US$6 billion and provides the additional content, expertise, and expansion opportunities to accelerate DAZN’s growth trajectory.
Foxtel is one of Australia’s leading media companies, with 4.7 million subscribers, who will benefit from DAZN’s extensive portfolio of sports content, platform technology, and global reach.
From its beginnings as Australia’s original pay-TV innovator, Foxtel has evolved to become a digital and streaming leader in sports and entertainment and the proposed transaction positions Foxtel for continued expansion as a digital-first, streaming-focused business. Foxtel will maintain its local character, led by the CEO, Patrick Delany, and his world-class management team.
DAZN, a sports streaming platform with a truly global reach, is committed to growing the global audience for domestic Australian sports across the 200 territories in which it is available.
Under the terms of the transaction, News Corp and Telstra will become minority shareholders in DAZN, enabling them to retain an interest in Foxtel.
Shay Segev, Chief Executive Officer of DAZN, said: “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market, marking another step in our long-term strategy to become the global home of sport. Foxtel is a successful business that has undergone a remarkable digital transformation in recent years, and we are confident that our global reach and relentless pursuit of innovation will continue to drive the business forward and ensure long-term success.
“We are committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment, using our world-leading technology to further enhance the viewing experience for customers. We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, and we will continue to promote women’s and under-represented sports.
“We’re looking forward to working closely with Patrick Delany and his team, as well as News Corp and Telstra as shareholders in DAZN, to realise our ambitious vision for the future of sport entertainment.”
Siobhan McKenna, the Chairman of Foxtel, said the agreement with DAZN was international recognition of the transformation of Foxtel from an incumbent pay TV operator to a sports and entertainment digital and streaming leader. “Over the last seven years the Foxtel team, with the strong support of News, have achieved an extraordinary turnaround in an intensely competitive environment.”
Foxtel Group CEO, Patrick Delany, said: “Today’s announcement is a natural evolution for the Foxtel Group, having reinvented the company over the past five years as Australia’s most dynamic technology-led streaming company.
“Kayo and Foxtel provide Australian sports fans with access to the best Australian and international sport and shows, including AFL, NRL and Cricket with 4.7 million subscribers.
“We are excited by DAZN’s commitment to the Australian market. They are experts in the sports media business and can play a significant role in supporting Foxtel as the business grows its streaming capabilities, bringing a bigger and better service to customers across entertainment, news and sport. They are a perfect match for us as we look toward this next era of growth.
“We have been grateful for the support of News Corp while we reimagined the future of Foxtel. In 2019, when we merged Foxtel and Fox Sports we had many people questioning our future.
“After launching Kayo later in 2019 and BINGE in 2020, today we are the largest Australian-based streamer of sport and entertainment, we have stabilised our Foxtel base and launched Hubbl to help consumers find all the streamed content they love all in one place. This wouldn’t have been possible without the support and encouragement of News Corp.”
NOTES TO EDITORS
About DAZN
As a world-leading sports entertainment platform, DAZN streams over 90,000 live events annually and is available in more than 200 markets worldwide.
DAZN is the home of European football, women’s football, boxing and MMA, and the NFL internationally. The platform features the biggest sports and leagues from around the world – Bundesliga, Serie A, LALIGA, Ligue 1, Formula 1, NBA, Moto GP, and many more including the 2025 FIFA Club World Cup.
DAZN is transforming the way people enjoy sport. With a single, frictionless platform, sports fans can watch, play, buy, and connect. Live and on-demand sports content, anywhere, in any language, on any device – only on DAZN.
DAZN partners with leading pay-TV operators, ISPs and Telcos worldwide to maximise sports exposure to a broad audience. Its partners include Deutsche Telekom, Orange, Sky, Movistar, Telenet, Vodafone, and many more.
DAZN is a global, privately-owned company, founded in 2016, with more than 3,000 employees. The Group generated $3.2bn in revenue in 2023, having grown its annual revenues by over 50% on average from 2020 to 2023, through diverse revenue streams comprising subscriptions, advertising, sponsorship, and transactional. For more information on DAZN, our products, people, and performance, visit www.dazngroup.com.
About Foxtel
The Foxtel Group is one of Australia’s leading media companies with 4.7 million subscribers. Its businesses include subscription television, streaming, sports production and advertising. The Foxtel Group is owned 65% by News Corp and 35% by Telstra.
The Foxtel Group’s diversified business includes Fox Sports, Australia’s leading sports production company, famous for live sports and shows with the best commentators and personalities. It is also the home of local and global entertainment content and continues to be the partner of choice for the widest range of sports and international content providers based on established, long-term relationships, growing streaming audiences, and position as the largest Australian-based subscription television company.
View original content:https://www.prnewswire.co.uk/news-releases/dazn-advances-global-expansion-with-acquisition-of-foxtel-a-leading-australian-sports-and-entertainment-media-group-302337997.html
Fintech PR
President Emmerson Mnangagwa met this week with Zambia’s former Vice President and Special Envoy Enoch Kavindele to discuss SADC’s candidate for the AfDB
President Mnangagwa, who is SADC Chairperson, reaffirmed his own country’s and SADC’s enthusiastic support for Zambian candidate Sam Maimbo
LUSAKA, Zambia, Dec. 20, 2024 /PRNewswire/ — Special Envoy Kavindele released the following statement following the meeting:
“I am elated to witness the growing success and momentum of Sam Maimbo’s candidacy to become the next President of the African Development Bank. I am filled with gratitude to our friends across both SADC and COMESA for their continued support and good wishes.
Sam has garnered such wide consensus due to his being uniquely qualified to deliver the transformative change and empowerment our continent needs. Sam’s 30 years in development work is defined by driving outcomes, improving processes, and investing in people. The AfDB needs a hands-on leader who is laser focused on delivering results and who is unafraid of making tough decisions in order to best serve our continent. Sam is that leader. Sam has the track record and experience to drastically enhance the pace, scale, and impact of the Bank’s work in service of the people and governments of Africa.
Our region has a proud history of supporting fellow Southern Africans. For example, we all recall Lusaka’s role in hosting the African National Congress’ headquarters during the dark days of Apartheid oppression.
It therefore gives me no pleasure to observe my South African brothers, who have themselves leant on Zambia’s steadfast friendship over many decades, fail to rally behind both SADC and COMESA’s chosen candidate for the AfDB. Africa’s urgent economic development challenges demand transformational leadership at the AfDB, it is all of our responsibility to put forward the best candidate for the job. This is not the time or place for a government to act with narrow self-interest, we all must act in the continent’s and AfDB’s best interest.
I thank Sam Maimbo for his lifelong service to our entire continent, and I am eager to witness his enormous impact as President of the AfDB.”
Fintech PR
Stay Cyber Safe This Holiday Season: Heimdal’s Checklist for Business Security
LONDON, Dec. 20, 2024 /PRNewswire/ — Heimdal Security shares a practical holiday cybersecurity checklist, offering expert insights to help businesses safeguard against cyber threats this festive season.
With reduced staffing, remote work setups, and a surge in online shopping creating heightened vulnerabilities, this guide offers actionable tips to enhance business security.
Going beyond basic advice, the checklist also highlights the most common holiday scams and features videos showcasing real-life examples of Christmas-themed cyber scams and effective prevention strategies.
Key Tips to Protect Businesses This Holiday Season:
- Strengthen endpoints: Ensure devices are updated with antivirus and endpoint protection software; consider Endpoint Detection and Response (EDR) and application whitelisting.
- Prepare for phishing spikes: Train staff to identify suspicious emails, enforce robust email filters, and establish protocols for reporting unusual activity.
- Secure remote access: Mandate VPN usage, monitor unusual logins, and deactivate inactive accounts temporarily.
- Segment and shield networks: Isolate sensitive areas, deploy DNS security and advanced firewalls, and maintain full visibility over network traffic.
- Apply timely patches: Regularly update all systems and test patches in a controlled environment to minimize disruptions.
- Mitigate supply chain risks: Assess vendors thoroughly and limit their access to essential systems.
- Have a response plan ready: Tailor incident protocols for the holidays, create an on-call rotation for the IT team, and enable rapid action against suspicious activity.
“ Cybercriminals thrive on holiday distractions, but with proactive measures like phishing training, secure endpoints, and network segmentation, businesses can stay ahead of potential threats,” said Alex Panait, System Administrator at Heimdal Security.
Common Holiday Scams That Businesses Should Watch For:
Cybercriminals often tailor their tactics to exploit the festive season. The most common scams include:
- Spear phishing: Emails disguised as holiday bonuses or event invitations that steal credentials or spread malware.
- Malicious holiday E-Cards: Festive greetings that contain links deploying ransomware or spyware.
- Fake E-Commerce sites: Fraudulent websites offering discounts to steal payment information.
- Insider threats: Distracted or disgruntled employees mishandling or exploiting sensitive data.
- Corporate travel scams: Fake booking platforms targeting business travelers.
- Business email compromise (BEC): Fraudulent requests for urgent wire transfers during year-end financial rushes.
For more, read the full article here or watch the video on YouTube to see how these threats unfold and learn actionable prevention strategies.
About Heimdal:
Established in Copenhagen in 2014, Heimdal® empowers CISOs, security teams, and IT administrators to improve their security operations, reduce alert fatigue, and implement proactive measures through a unified command and control platform.
Heimdal’s award-winning cybersecurity solutions span the entire IT estate, addressing challenges from endpoint to network levels, including vulnerability management, privileged access, Zero Trust implementation, and ransomware prevention.
For further press information:
Madalina Popovici
Media Relations Manager
[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/stay-cyber-safe-this-holiday-season-heimdals-checklist-for-business-security-302337465.html
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