SOURCE: Beta Music Group Inc

Beta Music Group, Inc. Reports for Second Quarter 2014. Reduction in Liabilities of $4.1 Million, Increase in Assets of $0.4 Million and Net Income of $2.6 Million

Beta Music Group, Inc. (OTCQB: BEMG) ("BEMG" or the "Company"), Inc., a digital media holding company providing interactive and digital marketing, social and mobile marketing, television and online programing, strategic media consulting, direct advertising and other specialty communications services to promote small businesses, today announced its operating results for the second quarter and first half of 2014 (see details below).

 

Comparison of Operating Results for the Three Months ended June 30, 2014 and 2013

 

-          Revenue for three months ended June 30, 2014 totaled $17,500 compared with revenue of $0 for three months ended June 30, 2013.

-          General and administrative (“G&A”) expenses for three months ended June 30, 2014 and June 30, 2013 totaled $592,763 and $61,800 respectively. The increase in G&A expenses was primarily due to $510,000 in non-cash; stock based expenses for business development regarding the expansion of the digital media and television production platform. The Company forecasts these expenses to be one-time startup costs related to the expansion of the digital media and television production platform. There was also $20,585 in additional legal expenses due to additional filings of public company.

-          Net Income for three months ended June 30, 2014 totaled $2,568,945 compared to $61,800 in net losses for period ended of June 30, 2013. The net income is primarily due to net non-operating income of $173,642 regarding the acquisition of Viewpon and reduction in derivative expenses of $3,013,854.

-          Total Assets for three months ended June 30, 2014 totaled $460,670 compared to total assets of $92,219 for the period ended March 31, 2014The increase in assets of $368,451 is primarily due to the acquisition of Viewpon.

-          Total liabilities for three months ended June 30, 2014 totaled $870,831 compared to total liabilities of $5,021,325 for the period ended March 31, 2014. The decrease in liabilities of $4,150,494 is primarily due to reduction in derivative liabilities.

-          Total Stockholders’ deficit for three months ended June 30, 2014 totaled $410,161 compared to stockholder’s deficit of $4,929,106 for the period ended March 31, 2014. The increase in stockholders equity of $4,518,945 is primarily due to reduction in derivative liabilities and increase in assets from acquisition of Viewpon.

 

Comparison of Operating Results for the Six Months ended June 30, 2014 and 2013

 

-          Revenue for six months ended June 30, 2014 totaled $20,000 compared with revenue of $0 for six months ended June 30, 2013.

-          General and administrative (“G&A”) expenses for six months ended June 30, 2014 and June 30, 2013 totaled $707,784 and $158,600 respectively. The increase in G&A expense was primarily due to $570,000 in non-cash; stock based expenses for business development regarding the expansion of the digital media and television production platform. The Company forecasts these expenses to be one-time startup costs related to the expansion of the digital media and television production platform. There was also $24,097 in additional legal expenses due to additional filings of the public company. 

-          Net losses for six months ended June 30, 2014 totaled $1,081,607 compared to $158,600 in net losses for the six months ended of June 30, 2013.  The increase in net losses was primarily due to non-operating loss of $480,000 related to derivative expenses, $570,000 in non-cash, stock based expenses for business development regarding expansion of digital media and television production platform, $24,097 in additional legal expenses due to the additional filings of the public company.  The losses were offset by non-operating income of $173,642 regarding the acquisition of Viewpon.

-          Total Assets for six months ended June 30, 2014 totaled $460,670 compared to total assets of $91,168 for the period ended December 31, 2014.  The increase in assets of $369,502 is primarily due to the acquisition of Viewpon.

-          Total liabilities for six months ended June 30, 2014 totaled $870,831 compared to total liabilities of $1,429,722 for the period ended December 31, 2013. The decrease in liabilities of $558,891 is primarily due to reduction in derivative liabilities.

-          Total Stockholders’ deficit for six months ended June 30, 2014 totaled $410,161 compared to total stockholder’s deficit of $1,338,554 for period ended December 31, 2013. The increase in stockholders equity of $928,393 is primarily due to in reduction derivative liabilities and increase in assets from the acquisition of Viewpon.

 

Acquisition of Viewpon Holdings, Inc. (Viewpon.tv and Sideshow Entertainment)

As previously announced on June 27, 2014, Beta Music Group, Inc. completed the acquisition of Viewpon Holdings, Inc. ("Viewpon"), which owns and operates Viewpon.tv and Sideshow Entertainment. The Company forecasts revenues from the acquisition of Viewpon to be included into the consolidated financial statements starting in the Third Quarter of 2014.

 

The Company is also in the process of hiring an evaluation specialist to evaluate all of the intangible assets of Viewpon and Sideshow Entertainment that the Company acquired. The Company may have the evaluation of the intangible assets of Viewpon and Sideshow Entertainment completed during the fiscal year 2013.  These intangible assets may include television produced programming, television shows, digital media networks, software, brand name, trademarks, trade names, video and audiovisual materials, including  media videos, and TV programs, licensing, broadcast rights and unpatented technology.

 

Viewpon is a lifestyle entertainment show and online listing services website that features small businesses and stories across San Francisco, Sacramento, Seattle, Tahoe and the Pacific Northwest. From the coolest places to stay, play and dine, Viewpon takes viewers on a tour of all that's best in the area where they live. Viewpon is a weekly television show and digital video content website that highlights local small businesses and fun things to do in your area and then offers those experiences at a discount. The Viewpon television show drives customers to our website where customers can view digital videos of all our small business clients. Shop Viewpon finds coolest places up and down the West Coast to stay, spa, dine and have fun while offering huge discounts, to every spot featured in our show. Viewpon offers incredible savings on awesome experiences and customers get to "View" before they purchase. Everything offered on Viewpon's website has our seal of approval, plus deals never expire. Gift cards are also printable, so you can enjoy your adventure right away.

 

For more information please visit: www.viewpon.tv

 

Sideshow Entertainment is a full service television and video production company producing original, non-scripted programming. Founded in San Francisco in 2007, Sideshow Entertainment has produced reality-based programming featuring home makeovers, real estate, home brewing, infomercials and even a game show. Often partnering with high profile companies such as IKEA, Kelly Moore Paints, Big O Tires and Miller/Coors, Sideshow Entertainment prides itself in being able to help such high profile companies turn "branding" into compelling television.

 

For more information please visit: www.sideshowentertainment.tv

 

Management Comments

"As previously announced, the Company completed the Viewpon acquisition on June 27, 2014. The Company forecasts revenues from the acquisition of Viewpon to be included into the consolidated financial statements starting in the Third Quarter of 2014. A critical element of our strategic plan is to build out our platform to increase our customer base.  The Viewpon acquisition is part of this strategic plan to accelerate our growth by producing digital video commercials for small businesses and offering solutions to their advertising and marketing challenges by increasing their visibility," stated Jim Ennis, chief executive officer of Beta Music Group, Inc. “Launched over four years ago, Viewpon’s digital media platform and Sideshow Entertainment’s television production company has created success for small businesses along the west coast. We have worked closely over the past several months with Viewpon's executive management and are excited to be working together regarding this expansion. Viewpon, with their extensive experience in television production and serving the small business sector, is a key strategic part of Beta Music Group." 

 

"BEMG plans to expand Viewpon’s operations to the Northeast, Southeast and across United States. Our strategic plan is for Viewpon and Sideshow Entertainment to offer interactive and digital media, online television production, social media and mobile marketing and specialty communications services to serve small businesses.” added Mr. Ennis. Viewpon has approximately 20,000 registered users and has produced approximately 375 television shows and approximately 5,000 digital media broadcasts. As a result of the acquisition of Viewpon, the Company is expected to be a premier provider of digital media marketing, online programming, social and mobile marketing, strategic media planning and other specialty communications services for small and large businesses across various sectors including retail, health, wellness, consulting and other specific communities. The digital media videos are forecasting to serve small business sectors including boutiques, salons, restaurants, doctors, dentists, lawyers, accountants, hotels, travel services as well as auto mechanics, plumbers and many more small businesses.

 

Related to Viewpon’s expansion to the Northeast, on August 12, 2014, BEMG announced Viewpon’s planned expansion into the Connecticut market and is forecasting to be in New Haven during Fourth Quarter and operate across Connecticut.” added Mr. Ennis. On August 19, 2014, the Company announced Viewpon’s planned expansion into the New Jersey market and is forecasting to be in Bergen County during Fourth Quarter and then operate across New Jersey.

 

“Beta Music Group also plans to expand Sideshow Entertainment into an integrated multimedia entertainment production company that unites advertisers, producers and content creators to develop, produce and distribute content across digital, online, mobile, cable and broadcast mediums. The company plans to connect small businesses, content creators and advertisers in the creation and development of online and digital broadcasts. Sideshow Entertainment plans to create entertaining content for digital and on-line platforms across entertainment lifestyle categories including dining, hotels, and events while offering discounts and branded services for every small businesses featured in our shows.”

 

-          To learn more about Viewpon and Sideshow Entertainment, please visit our videos at http://www.betamusicgroupinc.com/news-videos/our-videos/

-          To learn more about Viewpon’s planned expansion into New Jersey, please visit our videos at http://www.youtube.com/watch?v=T7yoLFCvl1s

-          To learn more about  Viewpon’s planned expansion into Connecticut, please visit our videos at http://www.youtube.com/watch?v=nEliPaX8y3Q

 

Form 10-Q Report

Please refer to the Company's Form 10-Q, filed with the Securities and Exchange Commission on August 19, 2014, for a more detailed discussion of the Company's results. Please visit at www.sec.gov

 

 

About Beta Music Group

Beta Music Group, Inc. is a digital media holding company that provides interactive and digital marketing, social and mobile marketing, strategic media planning, direct marketing and other specialty communications services. The Company provides digital, mobile, social and video content productions to promote small businesses to their clients. BEMG produces digital video commercials for small businesses and creative solutions to advertising and marketing challenges to increase company's visibility. The Company helps local businesses find and keep more customers via strategic marketing partnerships and digital commercial promotions.

 

Beta Music Group's common stock trades on the OTCQB under the symbol "BEMG".

 

Companies and those interested in learning more about the Viewpon, Sideshow Entertainment or Beta Music Group, Inc. should visit www.betamusicgroupinc.com and www.viewpon.tv, and www.sideshowentertainment.tv

 

Forward-Looking Statements

Information in this document constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This release includes forward-looking statements contained within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding The Company’s expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words "forecast," "anticipate," "estimate," "project," “planned”, "intend," "expect," "should," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause The Company actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in The Company Filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to The Company herein are expressly qualified in their entirety by the above-mentioned cautionary statement. The Company disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law. This press release may also contain forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including the risk we may encounter delays or other difficulties in ramping-up production of our new products; the rapid development of new technology and competing products that may impair demand or render the Company's products and services obsolete; and other factors discussed in the Company's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended December 31, 2013 as well as other subsequent filings. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

 

Financial Communications Contact 

CSIR Group, LLC.

1412 Broadway, Suite 2304

New York, NY

T: (212) 386-7082

www.csirgroup.com

 

 

SOURCE: Beta Music Group, Inc.