ADEX MEDIA INC 
By MOUNTAIN VIEW, Calif., Aug. 20 /PRNewswire-FirstCall/ -- AdEx Media, Inc. (OTC Bulletin Board: ADXM), a leading performance-driven, online marketing and distribution company, today announced results for the second fiscal quarter ended June 30, 2009.
The Company reported revenues for the second quarter of 2009 of $8,159,289, a 1,035% increase over revenues of $718,776 from the same quarter for 2008 and revenues for the six month period ending June 30, 2009 of $11,653,185 versus revenues of $1,409,329 for the same period last year.
Net loss for the quarter was $2,640,778, compared with a net loss of $661,877 in the same quarter for 2008. Net loss for the quarter included $318,054 in stock-based compensation, $989,834 in impairment charges of acquired intangible assets, $82,049 in amortization of acquired intangible assets, and $948,350 in non-cash deemed dividends related to the company's recent financing through the sale of preferred stock and warrants.
Scott Rewick, Chief Executive Officer of AdEx commented, "We are obviously pleased with the strong revenue results we have posted in the first six months of this year and we will continue to leverage our proprietary marketing and technology platform." Rewick further stated, "We have recently initiated expansion plans internationally and raised $2.3 million in new capital which will strengthen our merchant credit card processing capability and media buying power."
A copy of the June 30, 2009 Balance Sheet and Statements of Operations for the quarters ended June 30, 2009 and 2008 are reproduced below. The Company's financial statements for the period ended June 30, 2009, were filed on Form 10-Q with the Securities and Exchange Commission.
Corporate Milestones in the second quarter of 2009 included:
-- Posted record revenues for the quarter and six months
-- Continued enhancements of AdExThink(TM), a real time, proprietary
data-processing and decision-making technology platform, including
improved server architecture and development of self optimizing landing
page creation tool
-- Expansion of internal and external offer product pipeline
-- Continued expansion and diversification of affiliate network and
in-house media buying infrastructure
-- Continued development of new merchant account relationships
-- Planned expansion internationally beginning with Canada and the UK
-- Entry into additional distribution channels
-- Closing of $2.34 million private placement of preferred stock and
warrants
The Company will host an investor conference call on Wednesday, August 26, 2009 at 2:00 PM Eastern Time to answer questions regarding the results for the three months ended June 30, 2009 reported in our Form 10-Q. US dialers: (877) 407-8031; International dialers (201) 689-8031. Interested parties may also listen via the Internet at www.investorcalendar.com. The call will be available for replay for 30 days by dialing (877) 660-6853 (US dialers); (201) 612-7415(International dialers), and entering the replay pass code 286 # and conference ID#331369 and on investorcalendar.com.
About AdEx Media, Inc.
AdEx Media, Inc. is an integrated Internet marketing and lead generation publisher and developer, manufacturer, and marketer of consumer products. AdEx both markets and distributes its own products, developed pursuant to strategic partnerships with manufacturers, and offers its third-party advertising customers a multi-channel Internet advertising network and diversified solutions for direct advertisers and agencies. AdEx's marketing platform provides a range of services including (i) search marketing, (ii) display marketing, (iii) lead generation, and (iv) affiliate marketing. AdEx currently sells its own suite of consumer products which include: (i) Overnight Genius(TM) -- a comprehensive computer learning course that enables users to master MS Windows, MS Office, eBay, and other software and online products and services; (ii) Rising Star Learning(TM) -- a math and language arts educational product for children; (iii) Debt Snap(TM) -- an audio seminar designed to help consumers manage their debt and restore credit standing; (iv) Lucky At Love(TM) -- a relationship strategy product; (v) EasyWhite Labs(TM) -- a teeth whitening product; (vi) Acai Alive(TM) -- a dietary supplement; (vii) RezQ(TM) -- a dietary supplement; and (viii) Tri-Cleanse(TM) -- a dietary supplement. The Company offers advertisers a compelling value proposition by offering true pay-per-performance pricing, commonly known as cost-per-action (CPA) or pay-per-action (PPA).For more information about AdEx Media, visit http://www.AdEx.com.
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission.
ADEX MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $2,567,287 $683,576
Restricted cash 100,000 -
Short-term investments 569,280 2,502,670
Accounts receivable, net of allowance
for doubtful accounts of $90,430 and
$19,737 1,179,546 521,004
Credit card processor holdbacks, net of
reserves of $595,640 and $167,363 604,771 300,493
Inventory 231,892 57,087
Prepaid expenses and other current assets 340,863 97,878
------- ------
Total current assets 5,593,639 4,162,708
Property and equipment, net 114,758 43,606
Intangible assets, net 232,222 1,367,330
Goodwill 8,448,789 8,448,789
----------- -----------
Total assets $14,389,408 $14,022,433
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,027,999 $929,807
Accrued liabilities 1,171,007 593,907
Warrant liability 186,353 -
Deferred revenue 119,641 25,709
Promissory notes 253,778 401,806
------- -------
Total current
liabilities 3,758,778 1,951,229
Promissory notes - 150,000
Deferred tax liability 5,053 404,817
--------- ---------
Total liabilities 3,763,831 2,506,046
--------- ---------
Commitments and Contingencies (Note 15)
Stockholders' Equity:
Preferred stock;
$0.0001 par value;
10,000,000 shares
authorized; 195 -
1,951,337 shares issued and
outstanding at June 30, 2009 for
series A preferred stock and zero at
December 31, 2008 Common stock,
$0.0001 par value; 150,000,000 shares
authorized, 31,756,245 3,166 3,120
and 31,202,347 shares issued and
outstanding at June 30, 2009 and
December 31, 2008, respectively
Additional paid-in capital 17,282,774 13,808,966
Accumulated deficit (6,660,558) (2,295,699)
---------- ----------
Total stockholders' equity 10,625,577 11,516,387
---------- -----------
Total liabilities and stockholders'
equity $14,389,408 $14,022,433
=========== ===========
ADEX MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For The Three For The Six
Months Ended Months Ended
----------------- -------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Marketing platform
services -external
offers $2,825,000 $718,776 $5,337,500 $1,409,329
Marketing platform
services -internal
offers 5,334,289 - 6,315,685 -
--------- - --------- -
Total revenues 8,159,289 718,776 11,653,185 1,409,329
Cost of revenues:
Marketing platform
services -external
offers 2,216,407 536,244 4,320,300 1,079,904
Marketing platform
services -internal
offers 1,506,669 - 1,907,325 -
Amortization of
acquired product
licenses 23,333 - 58,333 -
------ - ------ -
Total cost of revenues 3,746,409 536,244 6,285,958 1,079,904
--------- ------- --------- -------
Gross profit 4,412,880 182,532 5,367,227 329,425
--------- ------- --------- -------
Operating expenses:
Product development - 35,250 - 35,250
Sales and marketing 4,726,346 295,982 6,712,082 328,473
General and
administrative 697,400 542,713 1,376,537 551,208
Amortization of
intangible assets 39,892 - 86,941 -
Impairment charges on
intangible assets 989,834 - 989,834 -
------- - ------- -
Total operating
expenses 6,453,472 873,945 9,165,394 914,931
--------- ------- --------- -------
Operating loss (2,040,592) (691,413) (3,798,167) (585,506)
Other income and expense:
Interest and other
(expense) income, net (14,576) 29,536 432 32,093
Mark-to-market loss
on warrant liability (18,538) - (18,538) -
------- - ------- -
Loss before (benefit)
provision for income
taxes (2,073,706) (661,877) (3,816,273) (553,413)
(Benefit) provision for
income tax (381,278) - (399,764) 800
---------- -------- ---------- --------
Net loss (1,692,428) (661,877) (3,416,509) (554,213)
========== ======== ========== ========
Deemed dividend
to series A
preferred
stockholders (948,350) - (948,350) -
----------- --------- ----------- ---------
Net loss
attributable
to common
stockholders $(2,640,778) $(661,877) $(4,364,859) $(554,213)
=========== ========= =========== =========
Loss per
common
share,
basic and
diluted $(0.08) $(0.04) $(0.14) $(0.07)
====== ====== ====== ======
Weighted average
common shares
used in computing basic and
diluted loss per
common share 31,640,212 15,212,600 31,534,267 7,689,967
========== ========== ========== =========
SOURCE AdEx Media, Inc.
