SALINAS, CA / ACCESSWIRE / April 30, 2019 / 1st Capital Bank (OTC PINK: FISB) reported unaudited net income of $1.78 million for the three months ended March 31, 2019, an increase of 43.3% compared to net income of $1.24 million in the first quarter of 2018 and a decrease of 8.4% compared to income of $1.94 million in the fourth quarter of 2018, the immediately preceding quarter. Earnings per share were $0.34 (diluted) for the first quarter of 2019, compared to $0.38 (diluted) for the prior quarter, and $0.24 (diluted) for the first quarter of 2018.

Total assets grew $12.1 million in the first quarter, to $634.4 million at March 31, 2019, compared to $622.3 million at December 31, 2018. Net loans decreased $4.1 million, or 0.9%, during the first quarter, from $480.8 million at December 31, 2018 to $476.7 million at March 31, 2019. Growth in higher yielding commercial and industrial loans of $3.4 million and increases in the commercial real estate portfolio of $2.4 million were not sufficient to offset the $11.0 million decline in lower yielding single-family residential mortgages during the first quarter. Loan outstandings in the core relationship banking portfolio increased 1.8% during the first quarter to $357.6 million from $351.1 million at December 31, 2018, and increased 7.5% above prior year levels of $332.8 as of March 31, 2018. Because of the relatively unchanged level of loans and continuing strong performance of the loan portfolio, no provision for loan losses was taken in the first quarter of 2019, compared with $100 thousand in the fourth quarter of 2018, and a $20 thousand provision in the first quarter of 2018.

“We believe our solid first quarter results, and our continued investments in infrastructure and previously announced high profile additions to our group of experienced relationship managers will enable the Bank to continue our growth during the remainder of 2019,” said Thomas E. Meyer, President and Chief Executive Officer. “We are optimistic that the strong local economies along California’s Central Coast will continue to present excellent opportunities to attract quality new relationships.”

Net interest income before provision for loan losses (“NII”) increased $50 thousand, or 0.8%, to $6.18 million, compared to $6.13 million in the prior quarter; and increased 18.7% over the first quarter 2018 NII of $5.21 million. Net interest margin increased 9 basis points from 4.01% in the fourth quarter of 2018 to 4.10% in the first quarter of 2019, reflecting improved yields on the Bank’s investment portfolio as well as the continued low cost of deposits.

Non-interest income decreased $67 thousand, or 12.4%, from $541 thousand in the fourth quarter of 2018 to $474 thousand in the first quarter of 2019, and increased 24.4% from $381 thousand earned in the first quarter of 2018. Continued progress in generating income from the brokering of single-family residential mortgages was more than offset by the decline in gains on sale of SBA 7a loans.

The Bank’s return on average assets increased from 0.86% in the first quarter of 2018 to 1.15% in the first quarter of 2019, but declined slightly from 1.24% in the fourth quarter of 2018. Return on average equity also increased from 9.51% in the first quarter of 2018 to 11.95% in the first quarter of 2019, but also declined from 13.33% recognized in the previous quarter.

The Bank’s efficiency ratio increased from 58.3% in the fourth quarter of 2018 to 63.7% in the first quarter of 2019, primarily due to the investment in additional relationship managers combined with increases in other noninterest expenses.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Net interest income before provision for credit losses was $6.18 million in the first quarter of 2019, an increase of $50 thousand, or 0.8%, compared to $6.13 million in the fourth quarter of 2018 and an increase of $972 thousand, or 18.7%, compared to $5.21 million in the first quarter of 2018.

Average earning assets were $611.3 million during the first quarter of 2019, an increase of 0.8% compared to $606.2 million in the fourth quarter of 2018. The yield on earning assets was 4.28% in the first quarter of 2019, compared to 4.18% in the fourth quarter of 2018, primarily due to an improved mix in the loan portfolio and increased yields in the investment portfolio. The average balance of the investment portfolio decreased nominally by $224 thousand, from $69.8 million in the fourth quarter of 2018 to $69.6 million in the first quarter of 2019. The yield on the investment portfolio increased from 2.01% in the first quarter of 2018 to 2.48% in the fourth quarter of 2018 and 2.66% in the first quarter of 2019, resulting from increased yields from floating rate securities.

The cost of interest-bearing liabilities increased to 0.38% in the first quarter of 2019, from 0.23% in the first quarter of 2018 and 0.36% in the fourth quarter of 2018, while the average balance of interest-bearing liabilities increased nominally from $283.9 million in the first quarter of 2018 to $284.9 million in the fourth quarter of 2018, and increased to $287.3 million in the first quarter of 2019, as the Bank actively managed its leverage ratio, primarily with the placement of large depositor deposits into the ICS program. The average balance of noninterest-bearing demand deposit accounts increased from $245.1 million, or 46.3% of total deposits, in the first quarter of 2018 to $276.9 million, or 49.3% of total deposits, in the fourth quarter of 2018, and decreased to $275.9 million, or 49.0% of total deposits in the first quarter of 2019. The Bank’s overall cost of funds increased, from 0.12% in the first quarter of 2018 to 0.19% in the fourth quarter of 2018 and 0.20% in the first quarter of 2019.

“We are pleased to report that there was no significant attrition in the average balances of our noninterest-bearing deposits during a competitive first quarter of 2019, which contributed to the continued improvement in our net interest margin” noted Michael J. Winiarski, Chief Financial Officer.

PROVISION FOR CREDIT LOSSES

The provision for credit losses is a charge against current earnings in an amount determined by management to be necessary to maintain the allowance for loan losses at a level sufficient to absorb estimated probable losses inherent in the loan portfolio in light of losses historically incurred by the Bank and adjusted for qualitative factors associated with the loan portfolio.

The Bank recorded no provision for loan losses in the first quarter of 2019 compared with a provision of $100 thousand recorded in the fourth quarter of 2018, reflecting reductions in the level of criticized assets, changes in the mix of loan types within the portfolio and their respective historical loss rates, and management’s assessment of the amounts expected to be realized from certain loans identified as impaired. Impaired loans totaled $279 thousand at March 31, 2019 compared to $3.0 million at December 31, 2018, and $3.9 million at March 31, 2018.

At March 31, 2019, there were no non-performing loans in the Bank’s loan portfolio, compared with $2.7 million at December 31, 2018, and $252 thousand at March 31, 2008. A large nonaccrual loan paid off in full together with accrued interest during the first quarter. At March 31, 2019, the allowance for loan losses was 1.36% of outstanding loans, compared to 1.34% at December 31, 2018 and 1.42% at March 31, 2018. The Bank recorded net recoveries of $12 thousand in the first quarter of 2019, compared to net recoveries of $13 thousand in the fourth quarter of 2018, and $12 thousand in the first quarter of 2018.

NON-INTEREST INCOME

Non-interest income recognized in the first quarter of 2019 was $474 thousand, compared to $541 thousand in the fourth quarter of 2018. The primary cause of the decrease was that the Bank recognized $8 thousand in gain on sale of SBA loans in the first quarter of 2019 compared to $59 thousand in the fourth quarter of 2018. Overall, this represents a decrease in non-interest income of $67 thousand, or 12.4%, compared to the fourth quarter of 2018, and an increase of $93 thousand compared to the first quarter of 2018, when non-interest income totaled $381 thousand.

NON-INTEREST EXPENSES

Non-interest expenses increased $354 thousand, or 9.1%, to $4.24 million in the first quarter of 2019, compared to $3.89 million for the fourth quarter of 2018, and increased $360 thousand, or 9.3%, compared to $3.88 million recognized in the first quarter of 2018.

Salaries and benefits increased $151 thousand, or 6.0%, to $2.67 million in the first quarter of 2019 from $2.52 million in the fourth quarter of 2018, and increased $193 thousand, or 7.8%, compared to $2.48 million in the first quarter of 2018. These increases primarily reflect key additions to staff, primarily in the lending departments. From the fourth quarter of 2018 to the first quarter of 2019, base salaries and wages increased $24 thousand, or 1.29%, from $1.85 million to $1.88 million, health insurance premiums increased $25 thousand, or 15.1%, from $168 thousand to $193 thousand, and the employer’s portion of payroll taxes increased $68 thousand, or 63.1%, from $108 thousand to $176 thousand, reflecting the seasonal pattern of such taxes. Payroll taxes decreased $41 thousand, or 18.9%, year over year. Non-interest expenses other than salaries and benefits experienced a broad-based increase of $203 thousand, or 14.9%, from $1.36 million in the fourth quarter of 2018 to $1.57 million in the first quarter of 2019, reflecting the Bank’s expanded scope of operations and technology upgrades to enhance the customer experience and support internal operating needs.

The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 63.7% for the first quarter of 2019, compared to 58.3% for the fourth quarter of 2018 and 69.4% for the first quarter of 2018. Annualized non-interest expenses as a percent of average total assets were 2.74%, 2.48%, and 2.69% for the first quarter of 2019, the fourth quarter of 2018, and the first quarter of 2018, respectively.

PROVISION FOR INCOME TAXES

The Bank’s effective book tax rate was 26.4% in the first quarter of 2019, compared to 27.7% for the fourth quarter of 2018 and 26.6% for the first quarter of 2018. The lower effective rates these past several quarters reflects the permanent impact of lower corporate income tax rates after the passage of the Tax Cuts and Jobs Act of 2017.

About 1st Capital Bank

The Bank’s primary target markets are commercial enterprises, professionals, real estate investors, family business entities, and residents along the Central Coast Region of California. The Bank provides a wide range of credit products, including loans under various government programs such as those provided through the U.S. Small Business Administration (“SBA”) and the U.S. Department of Agriculture (“USDA”). A full suite of deposit accounts is also furnished, complemented by robust cash management services. The Bank operates full service branch offices in Monterey, Salinas, King City, and San Luis Obispo. The Bank’s corporate offices are located at 150 Main Street, Suite 150, Salinas, CA 93901. The Bank’s website is www.1stCapital.bank. The main telephone number is 831.264.4000. The primary facsimile number is 831.264.4001.

Member FDIC / Equal Opportunity Lender / SBA Preferred Lender

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are “forward-looking statements” within the meaning of and subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may contain words or phrases including, but not limited, to: “believe,” “expect,” “anticipate,” “intend,” “estimate,” “target,” “plans,” “may increase,” “may fluctuate,” “may result in,” “are projected,” and variations of those words and similar expressions. All such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that might cause such a difference include, among other matters, changes in interest rates; economic conditions including inflation and real estate values in California and the Bank’s market areas; governmental regulation and legislation; credit quality; competition affecting the Bank’s businesses generally; the risk of natural disasters and future catastrophic events including terrorist related incidents and other factors beyond the Bank’s control; and other factors. The Bank does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

This news release is available at the www.1stCapital.bank internet site for no charge.

For further information, please contact:

Thomas E. Meyer

or

Michael J. Winiarski

President and Chief Executive Officer

Chief Financial Officer

831.264.4057 office

831.264.4014 office

Tom.Meyer@1stCapitalBank.com

Michael.Winiarski@1stCapitalBank.com

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

March 31,

December 31,

September 30,

March 31,

Financial Condition Data1

2019

2018

2018

2018

Assets

Cash and due from banks

$
6,569

$
6,476

$
5,408

$
11,772

Funds held at the Federal Reserve Bank2

60,979

45,625

33,571

46,920

Time deposits at other financial institutions

–

–

996

996

Available-for-sale securities, at fair value

69,320

70,263

68,154

71,300

Loans receivable held for sale

–

–

1,000

1,000

Loans receivable held for investment:

Construction / land (including farmland)

20,189

21,353

22,396

17,453

Residential 1 to 4 units

139,765

150,677

147,205

140,474

Home equity lines of credit

8,676

8,008

7,853

6,565

Multifamily

54,586

53,181

53,984

54,109

Owner occupied commercial real estate

61,775

62,976

65,628

64,009

Investor commercial real estate

141,452

139,261

131,736

117,896

Commercial and industrial

42,098

38,745

38,672

40,307

Other loans

14,724

13,189

17,127

11,685

Total loans

483,265

487,390

484,601

452,498

Allowance for loan losses

(6,560
)

(6,548
)

(6,435
)

(6,410
)

Net loans

476,705

480,842

478,166

446,088

Premises and equipment, net

4,278

2,087

2,109

2,315

Bank owned life insurance

7,916

7,866

7,813

7,706

Investment in FHLB3 stock, at cost

3,163

3,163

3,163

3,163

Accrued interest receivable and other assets

5,498

5,965

6,255

5,535

Total assets

$
634,428

$
622,287

$
606,635

$
596,795

Liabilities and shareholders’ equity

Deposits:

Noninterest bearing demand deposits

$
268,195

$
281,695

$
248,036

$
236,358

Interest bearing checking accounts

35,832

33,144

35,274

39,606

Money market deposits

134,044

129,064

139,037

125,147

Savings deposits

110,877

99,340

109,530

128,659

Time deposits

18,953

17,254

16,010

12,295

Total deposits

567,901

560,497

547,887

542,065

Accrued interest payable and other liabilities

4,818

2,625

2,344

1,839

Shareholders’ equity

61,709

59,165

56,404

52,891

Total liabilities and shareholders’ equity

$
634,428

$
622,287

$
606,635

$
596,795

Shares outstanding

5,118,759

5,105,784

5,041,058

5,026,724

Nominal and tangible book value per share

$
12.06

$
11.59

$
11.19

$
10.52

Ratio of net loans to total deposits

83.94
%

85.79
%

87.27
%

82.29
%

1 = Loans receivable held for investment are presented according to definitions applicable to the regulatory Call Report.
2 = Includes cash letters in the process of collection settled through the Federal Reserve Bank.
3 = Federal Home Loan Bank

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended

March 31,

December 31,

September 30,

March 31,

Operating Results Data

2019

2018

2018

2018

Interest and dividend income

Loans

$
5,681

$
5,611

$
5,448

$
4,769

Investment securities

456

436

404

367

Federal Home Loan Bank stock

56

107

54

56

Other

259

236

222

174

Total interest and dividend income

6,452

6,390

6,128

5,366

Interest expense

Interest bearing checking

3

4

3

4

Money market deposits

129

134

123

72

Savings deposits

91

81

80

70

Time deposits

49

41

28

9

Total interest expense on deposits

272

260

234

155

Interest expense on borrowings

–

–

–

3

Total interest expense

272

260

234

158

Net interest income

6,180

6,130

5,894

5,208

Provision for loan losses

–

100

–

20

Net interest income after provision

for loan losses

6,180

6,030

5,894

5,188

Noninterest income

Service charges on deposits

76

78

78

71

BOLI dividend income

51

53

54

52

Gain on sale of loans

8

59

–

70

Other

339

351

339

188

Total noninterest income

474

541

471

381

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended

March 31,

December 31,

September 30,

March 31,

2019

2018

2018

2018

Noninterest expenses

Salaries and benefits

2,674

2,523

2,482

2,481

Occupancy

306

292

299

290

Data and item processing

215

193

204

196

Professional services

130

119

161

138

Furniture and equipment

157

116

137

126

Provision for unfunded loan

commitments

(15
)

10

4

(6
)

Other

773

633

682

656

Total noninterest expenses

4,240

3,886

3,969

3,881

Income before provision for income taxes

2,414

2,685

2,396

1,688

Provision for income taxes

638

745

654

449

Net income

$
1,776

$
1,940

$
1,742

$
1,239

Common Share Data1

Earnings per common share

Basic

$
0.35

$
0.38

$
0.35

$
0.25

Diluted

$
0.34

$
0.38

$
0.34

$
0.24

Weighted average common shares outstanding

Basic

5,110,382

5,081,260

5,038,340

5,019,518

Diluted

5,186,796

5,166,613

5,147,292

5,110,342

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 7% stock dividend to shareholders of record November 21, 2018 and paid December 14, 2018.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

March 31,

December 31,

September 30,

March 31,

Asset Quality

2019

2018

2018

2018

Loans past due 90 days or more and accruing

interest

$
–

$
–

$
–

$
–

Nonaccrual restructured loans

–

–

–

–

Other nonaccrual loans

–

2,711

2,906

252

Other real estate owned

–

–

–

–

$
–

$
2,711

$
2,906

$
252

Allowance for loan losses to total loans

1.36
%

1.34
%

1.33
%

1.42
%

Allowance for loan losses to nonperforming loans

n/a

241.53
%

221.44
%

2,543.65
%

Nonaccrual loans to total loans

0.00
%

0.56
%

0.60
%

0.06
%

Nonperforming assets to total assets

0.00
%

0.44
%

0.48
%

0.04
%

Regulatory Capital and Ratios

Common equity tier 1 capital

$
61,585

$
59,565

$
57,166

$
53,515

Tier 1 regulatory capital

$
61,585

$
59,565

$
57,166

$
53,515

Total regulatory capital

$
67,209

$
65,177

$
62,747

$
58,722

Tier 1 leverage ratio

9.79
%

9.55
%

9.35
%

9.14
%

Common equity tier 1 risk based capital ratio

13.72
%

13.30
%

12.83
%

12.88
%

Tier 1 risk based capital ratio

13.72
%

13.30
%

12.83
%

12.88
%

Total risk based capital ratio

14.97
%

14.55
%

14.09
%

14.14
%

Three Months Ended

March 31,

December 31,

September 30,

March 31,

Selected Financial Ratios1

2019

2018

2018

2018

Return on average total assets

1.15
%

1.24
%

1.12
%

0.86
%

Return on average shareholders’ equity

11.95
%

13.33
%

12.38
%

9.51
%

Net interest margin

4.10
%

4.01
%

3.89
%

3.70
%

Net interest income to average total assets

3.99
%

3.91
%

3.80
%

3.61
%

Efficiency ratio

63.73
%

58.26
%

62.36
%

69.44
%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.

Three Months Ended

March 31,

December 31,

September 30,

March 31,

Selected Average Balances

2019

2018

2018

2018

Gross loans

$
487,838

$
484,041

$
480,621

$
441,069

Investment securities

69,553

69,778

70,152

73,879

Federal Home Loan Bank stock

3,163

3,163

3,163

3,163

Other interest earning assets

50,778

49,212

46,534

52,773

Total interest earning assets

$
611,332

$
606,194

$
600,470

$
570,884

Total assets

$
628,320

$
622,259

$
615,388

$
585,047

Interest bearing checking accounts

$
34,268

$
36,273

$
34,883

$
35,668

Money market deposits

127,764

124,924

140,443

115,386

Savings deposits

107,158

106,889

117,023

120,323

Time deposits

18,099

16,828

15,216

12,543

Total interest bearing deposits

287,289

284,914

307,565

283,920

Noninterest bearing demand deposits

275,956

276,866

249,488

245,085

Total deposits

$
563,245

$
561,780

$
557,053

$
529,005

Borrowings

$
–

$
–

$
–

$
933

Shareholders’ equity

$
60,286

$
57,751

$
55,858

$
52,826

SOURCE: 1st Capital Bank

ReleaseID: 543583

NEW YORK, NY / ACCESSWIRE / April 30, 2019 / Lindsay Guion a respected and professional, CEO and Global Chairman of GUION PARTNERS INC – and GUION PARTNERS, LLP is proud to announce the release of his new business and legal affairs website designed specifically for potential client convenience and use. April 2019, The United States of America – The newly updated website will launch on May 1, 2019 with the intent to streamline processes for both clients and GUION PARTNERS. The user-friendly website has several new functions which are designed for client ease and efficiency. The features added are as follows: – Schedule now: this feature allows clients to schedule an introductory phone call, book a time for an in-office appointment, or set a time for a follow-up conversation.

Contact us: this feature is an integrated messaging platform that clients are
able to fill out and inquire about services offered by GUION PARTNERS.
Make a payment: the make a payment tab is designed to process payments immediately, with the convenience of a client as a top priority.
Send us a file: clients who wish to contact GUION PARTNERS for potential representation can easily and securely share documentation to highlight their resume or portfolio.

About Lindsay Guion:

Lindsay Guion is the founder, CEO, and Global Chairman of GUION PARTNERS, INC. Lindsay Guion has an impressive 20-year tenure in the entertainment industry and manages several high-profile clients of the entertainment and professional athletic community. Lindsay Guion takes pride in ethically and purposefully managing his client’s goals and ensuring they reach the stardom they are destined for. On top of being an entrepreneur and business owner, Lindsay Guion is also a member of Ivy.com as well as The Recording Academy, and Black Entertainment & Sports Lawyers Association.

About GUION PARTNERS:

GUION PARTNERS LLP is a newly formed District of Columbia-based firm that represents government, technology/media, entertainment professionals and athletes of various sports.

GUION PARTNERS INC work alongside their clients to develop their career and achieve their full potential. For further information and questions please visit: https://guionpartners.com/

CONTACT:

admin@lindsayguion.com

SOURCE: GUION PARTNERS, INC.

ReleaseID: 543595

VANCOUVER, BC / ACCESSWIRE / April 30, 2019 / Sandstorm Gold Ltd. (“Sandstorm Gold Royalties” or “Sandstorm”) (NYSE American: SAND, TSX: SSL) will release its 2019 first quarter results on Tuesday, May 7, 2019 after markets close.

A conference call will be held on Wednesday, May 8, 2019 starting at 8:30am PDT to further discuss the first quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:

Local/International: (+1) 201 389 0899
North American Toll-Free: (+1) 877 407 0312
Conference ID: 13690127
Webcast URL: https://bit.ly/2UrX9QL

CONTACT INFORMATION

For more information about Sandstorm Gold Royalties, please visit our website at www.sandstormgold.com or email us at info@sandstormgold.com.

ERFAN KAZEMI

KIM FORGAARD

CHIEF FINANCIAL OFFICER

INVESTOR RELATIONS

604 689 0234

604 628 1164

ABOUT SANDSTORM GOLD ROYALTIES

Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 188 royalties, of which 20 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties. For more information visit: www.sandstormgold.com.

SOURCE: Sandstorm Gold Ltd.

ReleaseID: 543532

SHIJIAZHUANG, HEBEI PROVINCE, CHINA / ACCESSWIRE / April 30, 2019 / Fincera Inc. (”Fincera” or the ”Company”) (OTCQB: YUANF), a leading provider of internet-based financing and ecommerce services for small and medium-sized businesses (”SMBs”) and individuals in China, today reported financial results for the year ended December 31, 2018.

Full-year 2018 Financial Highlights

Income (revenue) for the year ended December 31, 2018 was RMB1,412.0 million (US$205.7 million), an increase of RMB388.1 million from RMB1,023.9 million in the prior year period, as a result of the ramp-up of the Company’s internet-based business segment.
Net income improved to RMB274.8 million (US$40.0 million) in the year ended December 31, 2018, or RMB5.45 per diluted share (US$0.79 per diluted share), compared to a net loss of RMB8.4 million, or RMB0.18 per diluted share in the prior-year.

Dividend Announcement
Fincera is pleased to announce plans to pay its shareholders a cash dividend semi-annually.

On April 24, 2019, the Company’s Board of Directors approved a cash dividend of US$0.30 per share, payable on or about May 22, 2019 to shareholders of record as of the close of business on May 10, 2019. Although the Company has paid special dividends in the past, this marks the first time that Fincera plans to pay a dividend twice per year going forward.

Operational Highlights
Loan transaction volume across all loan types for 2018 totaled approximately RMB27.9 billion (US$4.1 billion), an increase of approximately 3.9% compared to approximately RMB26.8 billion in 2017.

Operating Review
CeraVest, known as Qingyidai (轻易贷) in China, is the Company’s proprietary peer-to-peer lending platform through which it offers SMBs short-term financing at competitive interest rates. Fincera offers three loan types to its customers, 180-day term loans (the Company’s primary focus), 30-day lines of credit, and installment loans via its CeraVest platforms.

(in millions)

For the Year Ended

Transaction Volume

December 31, 2018

December 31, 2017

Amount

Amount

% Change

RMB

RMB

180-day term loans

12,000

5,819

106.2

%

30-day credit lines

12,916

16,958

(23.8

%)

Installment loans

2,939

4,031

(27.1

%)

Total

27,855

26,808

3.9

%

180-Day Term Loans (”Qingying”)
Fincera facilitates 180-day term loans that accrue interest at 4.25% (or 8.62% on an annualized basis) and are branded as Qingying. Fincera charges a facilitation fee between 3-5% depending on the type of the loan. The fee portion is collected by the Company while the investor holding the loan at maturity receives the entirety of the interest payments. In addition, the borrower remits 10.0% of the principal loan balance to the Company as a security deposit that is refunded to the borrower upon timely repayment of principal and interest. Payment of principal and interest is due in a lump sum at the maturity date at the end of the 180-day term. Outstanding balances after the maturity date are considered delinquent. In the event of delinquency, the Company will keep the security deposit as a one-time penalty fee and may assess additional penalties.

As of December 31, 2018, the Company has facilitated an aggregate of RMB24.9 billion (US$3.6 billion) in 180-day term loans.

During 2018, Fincera facilitated RMB12.0 billion (US$1.7 billion) in Qingying 180-day term loans.

30-day Lines of Credit (”Yueying”)
Fincera facilitates revolving credit lines that are interest-free to SMBs to fund their short-term working capital needs. Branded as Yueying, these credit lines have a 30-day billing cycle. Outstanding balances after the bill due date are considered delinquent and subject to certain penalties.

Similar to credit cards, Fincera’s credit lines contain no fees for borrowers as long as any outstanding balances are paid in full each month. A fee is charged to the merchants where the credit lines are used of between 1.6-2.2%. When the credit line is successfully facilitated by the Company’s online peer-to-peer (P2P) platform, which is called Qingyidai, Fincera collects a portion of this fee as facilitation fee income. The remainder of the fee goes to the investor in the loan.

Credit line users are subject to an application and credit approval process and are required to provide guarantees and collateral. Merchants may use funds received from users to make payments to other users or merchants, or to cash out the funds via transfer to a bank account. For certain payments, such as driver salary payments, a fee is charged to the borrower instead of to the merchant, since the merchant in these scenarios typically will not accept paying a fee for such a transaction.

As of December 31, 2018, the Company has facilitated an aggregate of RMB59.2 billion (US$8.6 billion) in 30-day lines of credit transactions.

During 2018, Fincera facilitated RMB12.9 billion (US$1.9 billion) in Yueying 30-day lines of credit transactions.

Installment Loans (”Zhongying”)
Fincera facilitates installment loans, branded as Zhongying, that are utilized by borrowers primarily to fund purchases of trucks and consumer discretionary goods and services, with the borrowed purchase funds being transferred directly to the merchant via Fincera’s payment network. Based on the term of the loan and the type of purchase, Fincera charges the merchants where the funds are used a fee of between 6.5%-8.9% on the transaction. Similar to Yueying, when the loan is successfully facilitated by the Company’s online P2P platform, Fincera collects a portion of this fee as facilitation fee income. The remainder of the fee goes to the investor of the loan in the form of interest payments. The loans require some borrowers to provide collateral to partially secure their obligations. Terms of these installment loans may vary between three and 24 months; however, the majority of the installment loans carry a term of 12 months.

As of December 31, 2018, the Company has facilitated an aggregate RMB7.0 billion (US$1.0 billion) in installment loans.

In 2018, Fincera facilitated RMB2.9 billion (US$0.4 billion) in Zhongying installment loans.

New Broker Network Business Model
During the fourth quarter of 2018, Fincera converted its existing wholly owned store distribution network into a broker distribution network that is not owned by the Company. Fincera believes there are many advantages to making its distribution network independently owned and operated.

The broker distribution network operates under a revenue sharing arrangement where predetermined amounts of revenues are shared with the brokers. In addition, since the new distribution network is owned by third-parties, Fincera is no longer responsible for funding its operating costs. The Company believes that the broker network will provide greater incentive to the brokers than before, when the associated personnel were direct employees of the Company. Overall, the Company believes that the change will result in increased efficiency and profitability for Fincera.

As of December 31, 2018, the Company’s borrowers consisted of 21.1% companies and 78.9% individuals.

Management Commentary
Mr. Jason Wang, CFO of Fincera, stated, ”Fincera reported exceptional financial results during 2018, which is largely due to the continued growth and brand recognition of our online lending platform. We are pleased to have achieved record loan transaction volume during a time of industry-wide anxiety due to uncertainty about future government regulations. We believe we are one of the few, if not only P2P platforms in China that have established a strong reputation as a valuable partner to small and medium-sized business customers, as well as the investors who trust in our ability to properly underwrite in order to protect their money. We have successfully navigated changes within the P2P industry in China and support the government’s initiatives towards properly overseeing the marketplace. We believe our risk management efforts have Fincera well positioned to take advantage of the ongoing ‘flight toward quality’ in our industry.”

2018 Financial Results

Currency Conversion
This release contains approximate translations of certain RMB amounts into US$ for convenience. Unless otherwise noted, all translations from RMB to US$ are made at a rate of USD1.00 = RMB6. 8632 on December 31, 2018, representing the certificated exchange rate published by the People’s Bank of China’s Monetary Policy Division. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate, or at any other rate.

Income (Revenues)
The table below sets forth certain line items from the Company’s Consolidated Statement of Income as a percentage of income:

(RMB in thousands)

Year ended

December 31,

2018

Year ended

December 31,

2017

Amount

% of Revenue

Amount

% of Revenue

Y-O-Y % CHANGE

RMB

RMB

Facilitation fees

658,686

46.6

%

231,709

22.6

%

184.3

%

Interest income

194,855

13.8

%

310,289

30.3

%

(37.2

%)

Service charges

19,396

1.4

%

201,386

19.7

%

(90.4

%)

Property lease and management

212,026

15.0

%

192,221

18.8

%

10.3

%

Other income

123,644

8.8

%

72,600

7.1

%

70.3

%

Debt assignment income

203,409

14.4

%

15,646

1.5

%

1,200.1

%

Total income

1,412,016

100.0

%

1,023,851

100.0

%

37.9

%

Income for the year ended December 31, 2018 was RMB1,412.0 million (US$205.7 million), an increase of RMB388.1 million from RMB1,023.9 million in the prior year period, as a result of the ramp-up of the Company’s internet-based business segment and the significant increasing sales of delinquent loans to third parties.
Facilitation fees, which represent fees charged for matching borrowers with investors on our CeraVest platform, totaled RMB658.7 million (US$96.0 million) in the year ended December 31, 2018. Facilitation fees emerged in July 2017 when Fincera re-developed its loan transaction process to comply with online lending regulations.
Interest income, which mainly represents interest earned on loans to CeraVest borrowers and loans to other borrowers, totaled RMB194.9 million (US$28.4 million) in the year ended December 31, 2018, a decrease of RMB115.4 million compared to the prior year mainly due to the reduction of origination fees. During the year 2017, interest income included the loan origination fee which was collected from borrowers. Origination fees were deducted from >the loan balance and amortized as interest income over the contract term. The Company no longer has such revenue after the change of its loan transaction process beginning in July 2017.
Service charges, which represents CeraPay’s transaction fees, totaled RMB19.4 million (US$2.8 million) in the year ended December 31, 2018, a decrease of RMB182.0 million compared to the prior year. Since July 2017, CeraPay loan transactions have been facilitated through its peer-to-peer lending platform; as a result, the service charges under the previous transaction process are now allocated instead as facilitation fee to the Company and as interest payable to investors of each loan once the facilitation is successful. Thus, the Company has not had this revenue item to report since the third quarter of 2018.
Property lease and management revenues, which represent the revenues of the property lease and management business, consisting of revenue derived from the Kaiyuan Finance Center, which includes the Shijiazhuang Hilton Hotel and office leasing operations, totaled RMB212.0 million (US$30.9 million) in the year ended December 31, 2018. This represents an increase of 10.3% compared to the prior year. During the year ended December 31, 2018, revenues of the Shijiazhuang Hilton Hotel were approximately RMB137.0 million (US$20.0 million), compared to RMB133.7 million during the prior year, representing an increase of 2.0%. Office leasing revenues were approximately RMB75.0 million (US$10.9 million), compared to RMB58.5 million during the prior year, representing an increase of 28.0%, due to higher occupancy rates of 95.0% the Kaiyuan Finance Center during the year ended December 31, 2018, as compared to 78.0% during the year ended December 31, 2017 as the Company continued improving the property management service and providing more competitive lease rates.
Debt assignment income, which represents the receipts of fees when delinquent loans are sold to third parties, totaled RMB203.4 million (US$29.6 million) in the year ended December 31, 2018, an increase of RMB 187.8 million when compared 2017, which was due to a significant increase in sales of delinquent loans to third parties.

Other income, which mainly consists of penalty and late fees across all loan types and is reduced by redeemed cash incentives that the Company provides to investors, totaled RMB123.6 million (US$18.0 million) in the year ended December 31, 2018, an increase of RMB51.0 million compared to the prior year, which was due to the strengthening of collection efforts and offset by an increase in redeemed cash incentives during 2018.

Operating Costs and Expenses

The Company’s operating costs and expenses decreased approximately 0.2% to RMB1,033 million (US$150.6 million) for the year ended December 31, 2018, from RMB1,035 million in the prior-year period. Interest expense decreased significantly as a result of the Company’s change to its new business model in July 2017 in response to new regulations in China. Under the new business model, loans that are successfully subscribed by investors on the Company’s peer-to-peer lending platform are derecognized from the Company’s balance sheet.

Net Income

Net income improved to RMB274.8 million (US$40.0 million) in the year ended December 31, 2018, or RMB5.45 per diluted share (US$0.79 per diluted share), compared to a net loss of RMB8.4 million, or 0.18 per diluted share in the prior-year.

Balance Sheet Data / Highlights

(in thousands, except per share amounts)

2018

2018

2017

USD

RMB

RMB

Cash and cash equivalents

144,902

994,489

1,123,296

Restricted cash

104

714

127,762

Total current assets

493,327

3,385,799

5,151,057

Total assets

720,401

4,944,255

6,753,504

Total current liabilities

593,838

4,075,631

6,046,590

Total liabilities

667,419

4,580,631

6,873,117

Total stockholders’ equity (deficit)

52,982

363,624

(119,613

)

Total shares outstanding

48,908,860

48,908,860

47,531,799

At December 31, 2018, Fincera’s cash and cash equivalents (not including restricted cash) were RMB994.5 million (US$144.9 million), compared to RMB1.1 billion at December 31, 2017.

Other financing receivables were RMB11.9 million (US$1.7 million) at December 31, 2018, compared to RMB1.9 billion at December 31, 2017, due to a change in business model made in July 2017 in order to comply with regulations in which certain loans became facilitated on the Company’s peer-to-peer lending platform and therefore no longer recognized as other financing receivables on the Company’s balance sheet.

Total liabilities were RMB4.6 billion (US$667.4 million) and stockholders’ equity was RMB363.6 million (US$53.0 million), compared to RMB6.9 billion and negative RMB119.6 million, respectively, at December 31, 2017. The increase in stockholders’ equity was primarily a result of net income earned during 2018 and a transaction into which the Company entered to exchange debt for equity during the first quarter of 2018. During the first quarter of 2018, the Company issued RMB188.6 million (or US$30.0 million at the time of the transaction) in shares to Mr. Yong Hui Li, its Chairman and CEO, as repayment of certain debts. The repayment consisted of an RMB22.0 million (or US$3.5 million at the time of the transaction) partial repayment of a loan Mr. Li had previously provided to the Company in March 2017 and payment of RMB166.6 million (or US$26.5 million at the time of the transaction) still owed to Mr. Li from the US$2.00 per share dividend the Company declared in June 2017. The resulting issuance of 1.32 million shares was calculated using the trailing 90 trading day average price of US$22.71 per share.

About Fincera Inc.
Founded in 2005, Fincera Inc. (OTCQB: YUANF) provides innovative internet-based financing and ecommerce services for small and medium-sized businesses and individuals in China. The Company works with a network of brokers in 31 provinces, municipalities, and autonomous regions across China. Fincera’s primary service offerings include a credit advance/online payment-processing network and a web-based small business lending platform. The Company’s website is http://www.fincera.net. Fincera trades on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies. OTCQB companies are current in their reporting and undergo an annual verification and management certification process.

Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to materially differ from those set forth in the forward-looking statements:

legislation or regulatory environments, requirements, policies or changes affecting the financial services industry in China;
continued compliance with government regulations and policies;
changing principles of generally accepted accounting principles;
outcomes of any government or government-related reviews, inquiries, investigations, and related litigation;
fluctuations in consumer demand;
management of rapid growth;
general economic conditions;
changes in government policy generally, both in China and in the U.S.;
fluctuations in sales of commercial vehicles in China;
China’s overall economic conditions and local market economic conditions;
the Company’s business strategy and plans, including its ability to expand through strategic acquisitions, the establishment of new locations, the discontinuance of certain products and services, and the introduction of new products and services;
the Company’s ability to successfully integrate acquisitions;
credit risk affecting the Company’s revenue and profitability, including its ability to manage the default risk of customers;
the results of future financing efforts; and
geopolitical events.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information, including forward looking statements, contained in this press release.

CONTACT
At the Company
Jason Wang
Chief Financial Officer
(858) 997-0680 / jcwang@fincera.net

Investor Relations
The Equity Group Inc.
Adam Prior
Senior Vice President
(212) 836-9606 / aprior@equityny.com

FINCERA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except share and per share data)

Years ended December 31,

2018

2018

2017

USD

RMB

RMB

Income

Facilitation fee

95,974

658,686

231,709

Interest income

28,391

194,855

310,289

Service charges

2,826

19,396

201,386

Property lease and management

30,893

212,026

192,221

Other income

18,016

123,644

72,600

Debt assignment income

29,638

203,409

15,646

Total income

205,738

1,412,016

1,023,851

Operating Costs and Expenses (Income)

Interest expense

10,666

73,206

307,191

Interest expense, related parties

22,843

156,775

162,041

Provision for credit losses

51,683

354,711

(13,443
)

Product development expense

11,665

80,057

82,375

Property and management cost

17,048

117,006

112,030

Marketing expense

(26,030
)

(178,650
)

51,284

Selling and marketing

34,551

237,128

129,892

General and administrative

28,148

193,187

204,077

Total operating costs and expenses

150,574

1,033,420

1,035,447

Income (loss) from continuing operations before income taxes

55,164

378,596

(11,596
)

Income tax provision (benefit)

15,125

103,804

(878
)

Income (loss) from continuing operations

40,039

274,792

(10,718
)

Income from discontinued operations, net of taxes

1

9

2,336

Net income (loss)

40,040

274,801

(8,382
)

Earnings (loss) per share

Basic

Continuing operations

0.82

5.65

(0.23
)

Discontinued operations

–

–

0.05

0.82

5.65

(0.18
)

Diluted

Continuing operations

0.79

5.45

(0.23
)

Discontinued operations

–

–

0.05

0.79

5.45

(0.18
)

Weighted average shares outstanding

Basic

48,604,738

48,604,738

47,271,473

Diluted

50,456,098

50,456,098

47,271,473

FINCERA INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share data)

December 31,

2018

2017

USD

RMB

RMB

ASSETS

Current assets

Cash and cash equivalents

144,902

994,489

1,123,296

Restricted cash

104

714

127,762

Loans, net

329,436

2,260,982

1,851,001

Other financing receivables, net

1,729

11,868

1,936,213

Prepaid expenses and other current assets

11,556

79,313

62,913

Current assets of discontinued operations

5,600

38,433

49,872

Total current assets

493,327

3,385,799

5,151,057

Property, equipment and leasehold improvements, net

189,578

1,301,114

1,350,858

Deferred tax assets, net

31,961

219,355

209,587

Long-term loans, net

3,354

23,021

–

Non-current assets of discontinued operations

2,181

14,966

42,002

Total assets

720,401

4,944,255

6,753,504

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Dividends payable

–

–

172,932

Short-term bank borrowings (including short-term bank borrowings of the consolidated VIEs without recourse to Fincera of RMB678,772 and RMB520,000 as of December 31, 2018 and 2017, respectively)

98,900

678,772

520,000

Long-term bank borrowings, current portion

12,531

86,000

73,000

Borrowed funds from CeraVest investor, related party (including borrowed funds from CeraVest investor, related party of the consolidated VIEs without recourse to Fincera of none and RMB1,161 as of December 31, 2018 and 2017, respectively)

–

–

1,161

Borrowed funds from CeraVest investors (including borrowed funds from CeraVest investors of the consolidated VIEs without recourse to Fincera of none and RMB743,496 as of December 31, 2018 and 2017, respectively)

–

–

743,496

Financing payables, related parties (including financing payables, related parties of the consolidated VIEs without recourse to Fincera of RMB2,129,374 and RMB1,729,327 as of December 31, 2018 and 2017, respectively)

323,315

2,218,974

1,836,203

Other payables and accrued liabilities (including other payables and accrued liabilities of the consolidated VIEs without recourse to Fincera of RMB235,541 and RMB2,358,109 as of December 31, 2018 and 2017, respectively)

141,792

973,147

2,635,604

Income tax payable (including income tax payable of the consolidated VIEs without recourse to Fincera of RMB90,389 and RMB36,733 as of December 31, 2018 and 2017, respectively)

15,792

108,386

53,278

FINCERA INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS – CONTINUED
(in thousands except share and per share data)

December 31,

2018

2017

USD

RMB

RMB

Current liabilities of discontinued operations (including current liabilities of discontinued operations of the consolidated VIEs without recourse to Fincera of RMB70 and RMB5 as of December 31, 2018 and 2017, respectively)

1,508

10,352

10,916

Total current liabilities

593,838

4,075,631

6,046,590

Non-current liabilities

Long-term bank borrowings

73,581

505,000

591,000

Long-term financing payables, related party

–

–

235,527

Total liabilities

667,419

4,580,631

6,873,117

Commitments and Contingencies

Stockholders’ equity

Preferred shares, $0.001 par value authorized – 1,000,000 shares; issued – none

–

–

–

Ordinary shares – $0.001 par value authorized – 1,000,000,000 shares; issued and outstanding – 48,908,860 shares at December 31, 2018; issued and outstanding – 47,531,799 shares at December 31, 2017

49

336

327

Additional paid-in capital

131,472

902,316

693,889

Statutory reserves

27,104

186,022

160,289

Accumulated deficit

(105,643
)

(725,050
)

(974,118
)

Total stockholders’ equity (deficit)

52,982

363,624

(119,613
)

Total liabilities and stockholders’ equity

720,401

4,944,255

6,753,504

SOURCE: Fincera Inc.

ReleaseID: 543493

MINNEAPOLIS, MN / ACCESSWIRE / April 30, 2019 / Insignia Systems, Inc. (NASDAQ: ISIG) (”Insignia”) today reported financial results for the first quarter ended March 31, 2019 (”Q1”).

Overview

Q1 2019 net sales decreased 30.7% to $5.1 million from $7.4 million in Q1 2018, primarily driven by a decrease in POPS revenue partially offset by increased innovation revenue.
Q1 2019 operating loss was $1.3 million compared to operating income of $0.2 million in Q1 2018.
Q1 2019 net loss was $1.1 million, or $0.09 per basic and diluted share, compared to net income of $0.2 million, or $0.01 per basic and diluted share in Q1 2018.

Insignia’s President and CEO Kristine Glancy commented, ”After completing a record year for our organization, we expected a slower start in 2019, and our first quarter results are aligned with our expectations. Our results however, do not adequately reflect the organization’s efforts to both stabilize our POPS business and accelerate our innovation pipeline. As indicated previously, the changes in our retail and CPG network during 2019, inclusive of the pending exit of a significant retailer in the first half due to competitive contracts, has adversely impacted our results. We expect ongoing competitive pressure to challenge our business results for the remainder of the year, however we are diligently pursuing a variety of efforts around innovation, client acquisition and retailer expansion. The decline in our POPS program was partially offset by strong innovation revenue, which accounted for nearly 30% of overall net sales for the first quarter. In addition, net sales from Custom Print Solutions experienced strong growth of 27% compared to the first quarter of 2018, driven by new client acquisition.”

Ms. Glancy continued, ”We are closely managing our overall business cost structure by continuing to invest strategically in growth segments while also optimizing overall costs. Our number one focus is on our current and new clients. We have diversified our solutions based on both client feedback and where brands are looking to invest their dollars. The continued growth of these solutions serves as a platform for further portfolio diversification. We are also focused on new retailer acquisition opportunities that would allow us to grow both our In-Store Signage Solutions and new solutions. Our balance sheet, high-performing team and overall portfolio of solutions remain strong and intact to support the continued need for company-wide transformation in a rapidly changing industry.”

Q1 2019 Results
Net sales decreased 30.7% to $5,140,000 in Q1 2019, from $7,419,000 in Q1 2018, primarily due to a decrease in POPS program revenue which was primarily due to a decrease in the number of signs placed and a decrease in average price per sign, which was driven by competitive pressures, the loss of a significant CPG, and the loss of a non-recurring favorable contract. Q1 2019 net sales were positively impacted by a 74% increase in the portfolio of new innovation solutions revenue compared to Q1 2018.

Gross profit in Q1 2018 decreased to $774,000, or 15.1% of net sales, from $2,746,000, or 37.0% of net sales, in Q1 2018. The decrease in gross profit was primarily due to a decrease in POPS signs solutions sales as our gross profit is highly dependent on sales levels due to the relatively fixed nature of a portion of our payments to retailers, combined with the decrease in average price per sign due to loss of a non-recurring favorable contract, partially offset by an increase in revenue and profitability from innovation initiatives.

Selling expenses in Q1 2019 were $738,000, or 14.4% of net sales, compared to $903,000, or 12.2% of net sales, in Q1 2018 due to lower variable staff related expenses.

Marketing expenses in Q1 2019 were $665,000, or 12.9% of net sales, compared to $604,000, or 8.1% of net sales, in Q1 2018. Increased marketing expense was primarily the result of increased consulting expenses, partially offset by decreased staffing and variable staff related expenses.

General and administrative expenses in Q1 2019 were $708,000, or 13.8% of net sales, compared to $1,007,000, or 13.6% of net sales, in Q1 2018 due to lower variable staff related expenses and lower administrative costs.

Income tax benefit for Q1 2019 was 15.7% of pretax loss, or a benefit of $204,000, compared to income tax expense of 30.8% of pretax income, or $73,000, in Q1 2018.

As a result of the items above, the net loss for Q1 2019 was $1,096,000, or $0.09 per basic and diluted share, compared to net income of $164,000, or $0.01 per basic and diluted share, in Q1 2018.

About Insignia Systems, Inc.
Insignia Systems, Inc. markets in-store advertising products, programs and services primarily to both consumer-packaged goods manufacturers and retailers. Insignia provided in-store media solutions in over 20,000 retail outlets, inclusive of grocery, mass merchants and dollar over the course of 2018. We partner with over 300 consumer packaged goods manufacturers across various categories including center store, refrigerated, frozen and the perimeter.

For additional information, contact (800) 874-4648, or visit the Insignia website at www.insigniasystems.com.

Investor inquiries can be submitted to investorrelations@insigniasystems.com.

Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not statements of historical or current facts are considered forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The words ”anticipates,” ”expects,” ”seeks,” ”will” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these or any forward-looking statements, which speak only as of the date of this press release. Statements made in this press release regarding, for instance, anticipated future profitability and margins, future service revenues, changes in composition of retailer and CPG manufacturer networks, innovation and transformation of the Company’s business are forward-looking statements. These forward-looking statements are based on current information, which we have assessed and which by its nature is dynamic and subject to rapid and even abrupt changes. As such, actual results may differ materially from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2018 and additional risks, if any, identified in our Quarterly Reports on Form 10-Q and our Current Reports on Forms 8-K filed with the SEC. Such forward-looking statements should be read in conjunction with the Company’s filings with the SEC. Insignia assumes no responsibility to update the forward-looking statements contained in this press release or the reasons why actual results would differ from those anticipated in any such forward-looking statement, other than as required by law.

Contact:

Insignia Systems, Inc.
Kristine Glancy, CEO
(763) 392-6200

Insignia Systems, Inc.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)

Three Months Ended

March 31,

2019

2018

Net sales

$
5,140,000

$
7,419,000

Cost of sales

4,366,000

4,673,000

Gross profit

774,000

2,746,000

Operating expenses:

Selling

738,000

903,000

Marketing

665,000

604,000

General and administrative

708,000

1,007,000

Operating income (loss)

(1,337,000
)

232,000

Other income, net

37,000

5,000

Income (loss) before taxes

(1,300,000
)

237,000

Income tax expense (benefit)

(204,000
)

73,000

Net income (loss)

(1,096,000
)

164,000

Net income (loss) per share:

Basic

$
(0.09
)

$
0.01

Diluted

$
(0.09
)

$
0.01

Shares used in calculation of net income (loss) per share:

Basic

11,856,000

11,819,000

Diluted

11,856,000

11,982,000

SELECTED BALANCE SHEET DATA
(Unaudited)

March 31,

December 31,

2019

2018

Cash and cash equivalents

$
3,966,000

$
10,160,000

Held to maturity investments

4,994,000

–

Working capital

12,198,000

13,351,000

Total assets

20,483,000

23,953,000

Total liabilities

5,013,000

7,633,000

Shareholders’ equity

15,470,000

16,320,000

Working capital represents current assets less current liabilities.

SOURCE: Insignia Systems, Inc.

ReleaseID: 543523

SAN JOSE, CA / ACCESSWIRE / April 30, 2019 / Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a revolutionary wireless charging 2.0 technology, today announced financial results for the first quarter ended March 31, 2019 and provided an update on its operational progress.

Recent Highlights

First WattUp enabled product launched; the Delight Oasis-RC personal sound amplification product
Completed $25 million public offering of common stock
Added Dan Fairfax to company’s board of directors
Appointed Cesar Johnston to Chief Operating Officer and Executive Vice President of Engineering
Increased patent count to 215 (188 patents/27 allowed applications as of April 30, 2019)

“We continued to work with customers to bring WattUp enabled products to market, while pursuing international regulatory certifications. We believe we are making the necessary strategic steps to capture the immense opportunity of wireless charging 2.0, and while the pace of reportable progress can be unpredictable, we expect to see increasing chip sales in 2019,” said Stephen R. Rizzone, president and CEO of Energous Corporation. “Our goal is to drive revenue and become cash flow positive as quickly as possible as we focus on the vertical markets we believe will have fastest adoption.”

Unaudited 2019 First Quarter Financial Results

For the first quarter ended Mar. 31, 2019, Energous recorded:

Revenue of $66,500
Operating expenses of $11.2 million (GAAP), comprised of $6.8 million in research and development, $2.8 million in general and administrative and $1.6 million in sales and marketing expenses
Net loss of $11.0 million, or $0.39 per basic and diluted share
Adjusted EBITDA (a non-GAAP financial measure) loss of $7.7 million
$36.1 million in cash and cash equivalents at the end of the first quarter, with no debt

First Quarter 2019 Conference Call

Energous will host a conference call to discuss its financial results, recent progress and prospects for the future.

When: Tuesday, April 30, 2019
Time: 1:30 p.m. PT (4:30 p.m. ET)
Phone: 888-317-6003 (domestic); 412-317-6061 (international)
Passcode: 6161503
Telephonic replay: Accessible through May 30, 2019
877-344-7529 (domestic); 412-317-0088 (international); passcode 10130882
Webcast: Accessible at Energous.com; archive available for approximately one year

About Energous Corporation

Energous Corporation (NASDAQ: WATT) is leading the next generation of wireless charging – Wireless Charging 2.0 – with its award-winning WattUp® technology, which supports fast, efficient contact-based charging, as well as charging over-the-air. WattUp is a scalable, RF-based wireless charging technology that offers substantial improvements in contact-based charging efficiency, foreign object detection, orientation freedom and thermal performance compared to older, coil-based charging technologies. The technology can be designed into many different sized electronic devices for the home and office, as well as the medical, industrial, retail and automotive industries, and it ensures interoperability across products. As a systems solutions company, Energous develops silicon-based wireless power transfer (WPT) technologies and customizable reference designs. These include innovative silicon chips, antennas and software for a wide variety of applications, such as smartphones, fitness trackers, hearables, medical sensors and more. Energous received the world’s first FCC Part 18 certification for at-a-distance wireless charging, and it has more than 200 awarded patents/allowed applications for its WattUp wireless charging technology to-date. For more information, please visit Energous.com.

Safe Harbor Statement

This press release contains forward-looking statements that describe our future plans and expectations. These statements generally use terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or similar terms. Examples of our forward-looking statements in this release include our statements about FCC certification of our technology, regulatory approvals internationally, and customer releases of products utilizing our technology. Our forward-looking statements speak only as of this date; they are based on current expectations and we undertake no duty to update them. Factors that could cause actual results to differ from what we expect include: uncertain timing of necessary regulatory approvals; timing of customer product development and market success of customer products; our dependence on distribution partners; and intense industry competition. We urge you to consider those factors, and the other risks and uncertainties described in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, in evaluating our forward-looking statements.

Energous Corporation
BALANCE SHEETS
(Unaudited)

As of

March 31,

2019

December 31, 2018

ASSETS

Current assets:

Cash and cash equivalents

$
36,129,119

$
20,106,485

Accounts receivable

66,650

44,550

Prepaid expenses and other current assets

490,295

637,708

Operating lease right-of-use assets

287,134

–

Total current assets

36,973,198

20,788,743

Property and equipment, net

1,144,897

1,219,016

Other assets

2,410

2,410

Total assets

$
38,120,505

$
22,010,169

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$
1,855,306

$
1,861,385

Accrued expenses

1,858,519

1,778,349

Operating lease liabilities

331,261

–

Total current liabilities

4,045,086

3,639,734

Stockholders’ equity:

Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at March 31, 2019 and

December 31, 2018; no shares issued or outstanding.

–

–

Common Stock, $0.00001 par value, 50,000,000 shares authorized at March 31, 2019 and

December 31, 2017; 30,328,549 and 26,526,303 shares issued and outstanding at

March 31, 2019 and December 31, 2018, respectively.

303

265

Additional paid-in capital

269,836,155

243,111,741

Accumulated deficit

(235,761,039
)

(224,741,571
)

Total stockholders’ equity

34,075,419

18,370,435

Total liabilities and stockholders’ equity

$
38,120,505

$
22,010,169

Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)

For the

Three Months Ended

March 31,

2019

2018

Revenue:

Engineering product development

$
66,500

$
25,000

Total revenue

66,500

25,000

Operating expenses:

Research and development

6,800,678

8,721,552

Sales and marketing

1,599,452

1,472,396

General and administrative

2,761,911

3,280,215

Total operating expenses

11,162,041

13,474,163

Loss from operations

(11,095,541
)

(13,449,163
)

Other income (expense):

Interest income

76,073

5,706

Total

76,073

5,706

Net loss

$
(11,019,468
)

$
(13,443,457
)

Basic and diluted net loss per common share

$
(0.39
)

$
(0.55
)

Weighted average shares outstanding, basic and diluted

27,939,166

24,536,274

Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)

For the

Three Months Ended

March 31,

2019

2018

Net loss (GAAP)

$
(11,019,468
)

$
(13,443,457
)

Add (subtract) the following items:

Interest income

(76,073
)

(5,706
)

Depreciation and amortization

235,368

299,520

Stock-based compensation

3,171,392

4,609,208

Adjusted EBITDA (non-GAAP)

$
(7,688,781
)

$
(8,540,435
)

Contact

Energous Public Relations
PR@energous.com
(408) 963-0200

Investor Relations Contact
Bishop IR
Mike Bishop
(415) 894-9633
IR@energous.com

SOURCE: Energous Corporation

ReleaseID: 543547

TORONTO, ON / ACCESSWIRE / April 30, 2019 / Easton Pharmaceuticals, Inc. (OTC PINK: EAPH) executive management is pleased to announce the move of its corporate head office from Elm Street, Toronto, Ontario to Brockhouse Road, Toronto, Ontario.

Easton confirms that with the acquisition of Supreme Sweets Inc. the management will be joining the Easton team at the Brockhouse Road facility and adding the extensive product line up to its growing product group within the Company’s Food and Beverage operation. This move will allow Easton to oversee their Food & Beverage, Real Estate and Gaming all within the same physical premises. Easton’s CEO Evan Karras sees the move as financially responsible and cost effective.
More information will be announced in the upcoming days, while Easton plans the re-launch of its websites.

About Easton Pharmaceuticals

Easton Pharmaceuticals is a diversified company and as part of its strategic growth plan, the Company has entered new lucrative market segments globally, including Food & Beverage, Real Estate Development and Gaming. Easton has been a specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries and previously developed and owned an FDA-approved wound-healing medical drug and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. Easton, together with BMV Medica S.A. own the exclusive distribution rights in Mexico and Latin America for two patented women’s diagnostic products and a novel natural treatment for Bacterial Vaginosis, which they have sub-licensed to Bayer and Gedeon Richter. In addition, a generic cancer drugs line is being developed for sale in Mexico. The company’s gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of other drugs.

For More Information on Easton and Affiliated and Partner Company’s Visit:

http://www.eastonpharmaceuticalsinc.com
http://finance.yahoo.com/q?s=eaph
https://twitter.com/eastonpharma

Safe Harbor

This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The ‘Act’). In particular, when certain words or phrases such as “hope,” “positive,” “anticipate,” “pleased,” “plan,” “confident that,” “believe,” “expect,” “possible” or “intent to” and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company’s products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company’s financial reports and filings.

CONTACT INFORMATION

Easton Pharmaceuticals, Inc.
Tel: +1 (647) 362-5700
Email: eastonpharma@protonmail.com
www.eastonpharmaceuticalsinc.com

SOURCE: Easton Pharmaceuticals, Inc.

ReleaseID: 543576