NEW YORK, NY--(Marketwired - Apr 1, 2015) - uSell.com (OTCQB: USEL), the leading US-based reCommerce marketplace that instantly finds cash offers for used smartphones and electronics, announced today annual revenues of $6.7 million for 2014, representing a 24 percent increase over 2013. Gross Merchandise Value of $16.7 million was realized for the nine months ended December 31, 2014.
Nik Raman, Chief Executive Officer, stated, "For three years now, we have been investing in our technology to enable small, professional buyers to purchase used smartphone and tablet inventory through our platform. In terms of developing our technology, refining our analytics, and honing in on the path to building the dominant marketplace platform in the industry, there has been no year as critical as 2014. Three things occurred in 2014 that will shape our future. Firstly, we completed the evolution of our business from a 'lead gen model' to a marketplace model. Secondly, we completed a three-year technological journey that culminated in the launch of our Managed by uSell service model. Lastly, we recognized the shifting landscape in our still rapidly expanding industry and identified where our business can create significant shareholder value. We believe that, from a technology perspective, we are positioned better than anyone else to capture this opportunity. We also feel that, as we continue to evolve our technology, the know-how and intellectual capital that we have accumulated over the last three years puts us at a distinct advantage to competition."
2014 Highlights:
Facilitated over 480,000 transactions to-date and currently attract over 1 million visitors to our website each month
Completed a material change to our business model in the first quarter of 2014, which positively impacted a number of our marketplace metrics
Launched the Managed by uSell service in October via a 3rd party logistics partner
Increased prices offered to sellers, leading to higher conversion rates and throughput
Increased Orders Completed by 89% year-over-year to 237,800 devices while increasing sales and marketing expenditure by just 23%
Completed a public offering of 1,550,000 Units at $3.00 per Unit, consisting of one share of common stock and one-half warrant to purchase one share of common stock, generating net proceeds of $3.7 million
Financial Results:
Year 2014 Compared to Year 2013 For the year ended December 31, 2014, revenues were $6.7 million, a 24 percent increase from $5.4 million in the year ended December 31, 2013. Operating loss for the year ended December 31, 2014 increased by $1.5 million, from a loss of $4.2 million in the year ended 2013 to a loss of $5.7 million. Net loss for the year ended December 31, 2014 increased by $3.0 million, from a loss of $4.3 million in the year ended 2013 to a loss of $7.3 million. The resulting EPS is ($1.15), as compared to ($0.95) a year earlier. Of note, for the year ended December 31, 2014, there was $3.7 million of noncash items which represented depreciation and amortization, stock based compensation, amortization of debt discount into interest expense, and change in fair value of derivative liability. Cash balances improved from $489,000 on December 31, 2013 to $2.4 million on December 31, 2014.
Conference Call Details: uSell.com will host a conference call on Wednesday, April 1, 2015 at 4:30pm EDT. The Company will discuss its 2014 operating and financial results and its strategy and outlook for 2015. The conference call will be hosted by Nik Raman, Chief Executive Officer, and Jennifer Calabrese, Chief Financial Officer. The live conference call can be accessed by dialing (866) 952-1907 or (785) 424-1826. Participants should ask for the uSell.com Earnings Conference Call.
Date: Wednesday, April 1, 2015 Time: 4:30PM EDT Dial-in Number: (866) 952-1907 International Dial-in Number: (785) 424-1826
Participants are recommended to dial-in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately two hours after completion through April 15, 2015. To listen to the replay, dial (800) 723-0549 (domestic).
About uSell.com, Inc. uSell.com is a reCommerce marketplace that helps individuals turn unused items into cash. uSell ensures that customers get the highest payouts with the least amount of hassle by facilitating risk-free transactions with professional buyers. For uSell's buyers, uSell offers a scalable technology, marketing, logistics, and analytics solution that provides a high volume of inventory at a low acquisition cost. Visit www.uSell.com
uSell.com, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31,
2014
2013
Assets
Current Assets:
Cash and cash equivalents
$
2,414,757
$
489,166
Accounts receivable, net
141,327
184,718
Other receivables
-
29,257
Prepaid expenses and other current assets
99,529
95,808
Total Current Assets
2,655,613
798,949
Property and equipment, net
6,928
7,289
Intangible assets, net
852,093
806,964
Other assets
25,875
34,520
Total Assets
$
3,540,509
$
1,647,722
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable
$
539,566
$
651,296
Accrued expenses
168,093
327,913
Deferred revenue
263,739
87,313
Derivative liability
-
1,001,385
Total Current Liabilities
971,398
2,067,907
Convertible notes payable, net of discount
-
246,128
Total Liabilities
971,398
2,314,035
Stockholders' Equity (Deficit):
Convertible Series A preferred stock; $0.0001 par value; 325,000 shares authorized; 100,000 and 0 shares issued and outstanding, respectively. Liquidation preference $300,000 and $0, respectively
10
-
Convertible Series B preferred stock; $0.0001 value per share; 4,000,000 shares authorized; 951,250 and 976,250 shares issued and outstanding, respectively. Liquidation preference $951,250 and $976,250, respectively
95
98
Convertible Series C preferred stock; $0.0001 value per share; 146,667 shares authorized; 146,667 and 0 shares issued and outstanding, respectively.
15
-
Convertible Series E preferred stock; $0.0001 value per share; 103,232 shares authorized; 103,232 and 0 shares issued and outstanding, respectively
10
-
Common stock; $0.0001 par value; 650,000,000 shares authorized; 7,572,703 and 4,973,073 shares issued, respectively, and 7,533,817 and 4,907,462 shares outstanding, respectively
753
490
Additional paid in capital
54,610,843
44,087,232
Accumulated deficit
(52,042,615
)
(44,754,133
)
Total Stockholders' Equity (Deficit)
2,569,111
(666,313
)
Total Liabilities and Stockholders' Equity (Deficit)
$
3,540,509
$
1,647,722
uSell.com, Inc. and Subsidiaries
Consolidated Statements of Operations
Year Ended December 31,
2014
2013
Revenue
$
6,665,429
$
5,371,381
Costs and Expenses
Cost of revenue
1,921,175
416,233
Sales and marketing expenses
5,811,873
4,729,552
General and administrative expenses
4,659,710
4,480,070
Total operating expenses
12,392,758
9,625,855
Loss from Operations
(5,727,329
)
(4,254,474
)
Other (Expense) Income:
Interest income
2,527
1,808
Interest expense
(891,596
)
(334,678
)
Gain on settlements of accounts payable
9,038
188,709
Derivative expense - convertible notes payable
-
(61,495
)
Change in fair value of derivative liability - embedded conversion feature of Convertible Series A preferred stock
-
47,876
Change in fair value of derivative liability - convertible notes payable
(681,122
)
149,398
Total Other (Expense) Income, Net
(1,561,153
)
(8,382
)
Net Loss
$
(7,288,482
)
$
(4,262,856
)
Basic and Diluted Loss per Common Share:
Net loss per common share - basic and diluted
$
(1.15
)
$
(0.95
)
Weighted average number of common shares outstanding during the period - basic and diluted
