EFactor Group Corp. Reports 2014 Financial Results

FY2014 Revenues of $1.63 Million Represent 120% Increase Year-Over-Year; Company Meets 4Q2014 Guidance and Records $1.1 Million in Revenues in the Fourth Quarter Alone; Five Acquisitions Completed in 2014 Contribute Revenues to the Company’s Social Network, Mentoring and Education and Business Services Divisions

NEW YORK, NY / ACCESSWIRE / April 13, 2015 / EFactor Group Corp. (OTCQB:EFCT) (“EFactor Group” “EFactor” or “the Company”), the owner of a group of entrepreneur-focused service companies and EFactor.com, a social network providing content and resources for entrepreneurs worldwide, today announced financial results for full year ended December 31, 2014.

Full Year 2014 Highlights and CEO Commentary

– EFactor Group Corp. acquired five entrepreneur-focused business in stock-only purchases throughout 2014; HT Skills, GroupCard B.V., Member Digital, ELEQT and Robson Dowry.

– Revenues for the twelve months ended December, 31 2014 increased 120% to $1,634,602 from $741,785 in 2013.

– The Company recorded revenues of $1.1 million in the 4Q2014 alone, meeting its fourth quarter 2014 revenue guidance issued on November 14, 2014.

– EFactor Group Corp.’s Social Network Division revenues increased 10 times to $0.8 million as a result of the ELEQT and GroupCard acquisitions in 2014.

– EFactor Group’s Education and Mentoring Division rebounded in the second half of the year and recorded $0.3 million in sales as the 2014-acquired HT Skills, Ltd. added to the division’s revenues.

– EFactor Group’s Business Services Division maintained $0.4 million in sales, equal to 2013.

“It has been a triumphant year for us,” began Adriaan Reinders, CEO of EFactor Group Corp.”Our stock-only acquisitions of five strategic, entrepreneur-focused businesses each provided our Group a combination of revenues, earnings, users and services to bolster our Social Network, Education and Mentoring, and Business Services divisions. These are the most frequently requested services to support entrepreneurs for which we now have operating businesses to fulfill these entrepreneurial requirements. Each of our acquired businesses is growing nicely, and our members and customers are beginning to cross-pollinate each other’s networks and service offerings which has been our plan from day one. As we accelerate our development of EScore(TM), we look forward to providing entrepreneurs with our fourth service offering; funding options for entrepreneurs. We intend to roll this service out to our subscriber bases in the near term,” Reinders concluded.

Revenues and Sales:

Revenues for the year ended December 31, 2014 was $1.63 million compared to $0.74 million in 2013, an increase of 120% year-over-year. A combination of growth from the Company’s legacy businesses including EFactor.com and EQ Mentor, a complete year of revenues from MCC International, and acquisition revenues recorded for part of the year from HT Skills, Member Digital, GroupCard B.V., ELEQT and Robson Dowry also contributed to the growth in 2014.

Revenue related to the three months ended December 31, 2014, was at $1.1 million and met the Company’s November 14, 2014 issued revenue guidance. The Company believes that its fourth quarter performance represents its expected 12-month run-rate of $3.5 – $4.0 million.

EFactor.com remains the Company’s flagship operating subsidiary and is one of the leading niche social networks designed to service entrepreneurs with valuable and cost-saving business tools, educational content, on-line and live events hosted by well-known business leaders and funding strategies. The Company’s social networks have an active membership of more than 1.5 million entrepreneur-members. The website, www.efactor.com, recorded a 70% increase of visitors from 11 million in 2013, to 19 million in 2014. Page views increased 24% to 96 million with pages-per-visit also increasing 20% to 4.34 and bounce rate decreased 33% to 15.81% for the year ended December 31, 2014 versus the same period prior year.

On efactor.com, the Company continues the branding and implementation of its unique EScoreTM system which is designed to measure entrepreneurial processes and prepare and educate entrepreneurs on funding strategies. In October of 2014, EFactor Group Corp. announced a collaboration with Freedomlab, B.V. Freedomlab is a creative strategy boutique, and is one of the pillars of the Dasym investment group. FreedomLab is working closely with EFactor’s website team on a redesign that leverages Freedomlab’s expertise and team of gamefication experts, social storytellers, algorithm specialists, visual designers and many other skills to further boost the engagement level of our users. Together, they are developing the next version of the Efactor.com platform that will encourage interaction amongst members and deploy specific services to further engage and expand subscribers of efactor.com and its social networks. The beta version of EScore(TM) 2.0 is expected to launch in 2015.

The combined operating subsidiaries of EFactor Group Corp.’s Social Network Division include EFactor.com, ELEQT and GroupCard. Revenues for EFactor Group’s Social Network Division was approximately $0.8 million, an approximate 10x increase over $68,000 in 2013. “VIP” membership fees, on line advertising, sponsorships and third party revenue sharing programs are the primary drivers of revenues for the Company’s Social Network Division.

EFactor Group’s Education and Mentoring Division includes EQ Mentor and HT Skills. Combined, these operating subsidiaries contributed approximately $0.3 million in revenues for the period ended December 31, 2014. Growth was flat year-over-year.

The Company’s Business Services Division includes MCC International, Member Digital and Robson Dowry. Combined, revenues from these operating subsidiaries totaled $0.4 million and remained unchanged versus prior year.

Cash and Non-Cash Expenses:

EFactor Group’s operating expenses are a combination of cash, and non-cash items. Costs of revenues and sales and marketing expenses to support the Group’s eight (8) operating subsidiaries totaled $0.9 million for the year, compared to $0.6 million in 2013. The increase is a direct result of increased sales for the period ended December 31, 2014.

General and administrative costs were $9.6 million in 2014, versus $3.9 million in 2013. Excluding $5.0 of non-cash, stock-based compensation captured in the 2014 figures, the adjusted, non-GAAP general and administrative expenses were $4.5 million representing an increase of 23% mainly attributable to the added entities within the organization. Other expenses for the Company also included a significant, non-cash expense due to an impairment of goodwill totaling $17.7 million.

Interest expense for the period was $2.4 million versus $0.9 million in 2013. Interest expenses includes non-cash amortization of $2.0 million for share issuance expense to satisfy debt holder enhancements as part of the consideration for entering into these investments. The Company expects to repay or convert into common stock the majority of its outstanding notes subject to the raising further capital and increasing revenues over the course of the next 12 months.

Excluding the value of non-cash stock based compensation and the non-cash impairment, the Company’s adjusted total expenses were $5.4 million for the year.

GAAP and Adjusted Earnings:

GAAP net loss increased to $28,264,566 from $5,947,079 for the twelve months ended December 31, 2014. The increase in net loss compared to the prior year period is primarily a result of the increase in cash and non-cash operating expenses and the increase in interest expense as described above. Excluding the non-cash components of each of these expenses, adjusted net loss for the year was $4.2 million or a loss of $0.05 per share based on a weighted average of 82,746,526 shares as December 31, 2014.

EFactor Group Corp. Outlook and Goals:

The Management of EFactor Group Corp. and the division heads of each one of the Company’s subsidiaries confirm the data released in 2014 by Moya K. Mason, an independent researcher, who estimated the worldwide market size of entrepreneurs at 300 million. EFactor Group estimates that 25% of these entrepreneurs have an affinity for on-line engagement creating a target market for EFactor Group of 90 million entrepreneurs. EFactor Group has established the following goals in 2015 and 2016.

1. Increase the number of Efactor.com members from 1.5m to 3.0m in 2015 and 5.0m in 2016.
2. Increase the percent conversion of free to paying members from 1.0% to 3.0% in 2015 to 5.0% in 2016.
3. Increase the spend per paying member from $100.00 in 2014 to $500.00 in 2016.

“We believe our platform on EFactor.com and the variety of services we offer on EFactor.com through our subsidiaries is the best mix of content, engagement, servicing and education for entrepreneurs,” began Marion Freijsen, COO of EFactor Group Corp. “We are excited for our team, our shareholders and members at what 2015 will produce for us and anticipate another exciting year for EFactor Group Corp.” Freijsen concluded.

EFACTOR GROUP CORP. FOURTH QUARTER and FULL YEAR 2014 EARNINGS CONFERENCE CALL

DATE: Monday, April 13, 2015
TIME: U.S. 9:00 a.m. ET
EUROPE 14:00 hrs. CET
DIAL IN: U.S. 1-877-407-0784
INTERNATIONAL 1-201-689-8560
CONFERENCE ID: “EFactor Group Corp. Conference Call”
WEBCAST: http://public.viavid.com/index.php?id=113852

A replay of the call will be available beginning two hours after the call through midnight April 20, 2015 by telephone at +1-877-870-5176 (US Domestic) or +1-858-384-5517 (International). The replay pin number is 13606028. This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this http://public.viavid.com/index.php?id=113852 or at ViaVid’s website at http://www.viavid.com, where the webcast can be accessed through April 12, 2016.

Use of Adjusted, Non-GAAP Financial Measures

To supplement the Company’s condensed financial statements presented in accordance with GAAP, EFactor Group Corp. uses “adjusted” non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted Expense and Adjusted, Non-GAAP net income and earnings per share.

“Adjusted,” or “Non-GAAP” measures are provided to enhance investors’ overall understanding of the Company’s current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed with GAAP results and the accompanying reconciliation, enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management’s internal comparison of the Company’s financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

About EFactor Group Corp.

EFactor Group Corp. (OTCQB:EFCT) helps Entrepreneurs build a better business. At its core is EFactor.com, an entrepreneur-focused social network providing content and resources for Entrepreneurs worldwide. The EFactor network applies its proprietary selection and matching algorithm to offer specific content and resources designed to help Entrepreneurs grow their businesses. The EFactor network of over 1.5 million like-minded Entrepreneurs is there to congratulate your every win, and to coach and inspire you whenever you feel frustrated by setbacks. You can count on us to connect you with the right people for your company and offer the tools, talent and resources that will help you succeed.

EFactor.com has over 1.5 million members in 26 territories and 196 countries across 240 industries. It is incorporated in Nevada and headquartered in San Francisco. For more information, visit http://www.efactor.com.

EFactor Group Corp. also has a portfolio of companies to assist Entrepreneurs based on their daily requirements – classified as our four divisions: 1. Social Networking, 2. Education and Mentoring, 3. Business Services and, 4. Funding. For more information about EFactor Group Corp. (OTCQB:EFCT) please visit: http://efactorgroup.com.

The EFactor.com Value – The Entrepreneurs Wingman

EFactor.com is a social network designed to support you as your business grows, along every step of your journey. We’ll be there to congratulate you every time you win and will coach and inspire you whenever you feel frustrated by setbacks. You can count on us to connect you with the right people for you and your company and offer you the resources and talent that will help you succeed. We are highly motivated everyday people who genuinely care about our team and customers. We cheer each other on and have each other’s back. We get to see our ideas come to life every single day. We’re entrepreneurs, contributing our expertise to the community.

See our Company Video here: http://ir.efactorgroup.com/videos/view/4/efactor-video

Cautionary Note on Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are not statements of historical facts and often contain words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words of similar meaning. Forward-looking statements are based on management’s current expectations, beliefs, assumptions and estimates regarding our company, industry, economic conditions, government regulations, energy policies and other factors. These statements are subject to significant risks, uncertainties, and assumptions that are difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied in the forward-looking statements. These risks include risk factors described from time to time in the reports and registration statements we file with the Securities and Exchange Commission, including those in our most recent Form 10-K and any updates thereto in our Forms 10-Q. There may be other risks and uncertainties that are not currently known to us or that we currently believe are not material. We make forward-looking statements based on currently available information, and we assume no obligation to, and expressly disclaim any obligation to, update or revise publicly any forward-looking statements made in this release, whether as a result of new information, future events or otherwise, except as required by law.

Company:

Marion Freijsen – Co-Founder/COO
EFactor Group Corp.
Main: +1 650 380 8280
Email: marion@EFactorgoup.com
EFactor email: http://www.EFactor.com/marion

Investor Relations:

John Mattio – Corporate and Investor Communications
EFactor Group Corp.
Main: +1 203 297 3911
Email: john.mattio@efactor.com

SOURCE: EFactor Group Corp.

ReleaseID: 427724