MGT NEWSROOM

MGT Provides Quarterly Corporate Update

Aug 16, 2016, 09:00 ET



HARRISON, N.Y., Aug. 16, 2016 /PRNewswire/ -- MGT Capital Investments, Inc. (NYSE MKT: MGT) today provided an update on its business and pending acquisitions, as well as its unaudited financial results for the three-month period ended June 30, 2016.

"In the second quarter the Company made significant progress implementing a multi-pronged strategy that has transformed MGT Capital Investments into the innovative cybersecurity company that we envisioned. With the broad set of differing technologies supporting the foundation of today's society, it is important that the cybersecurity protecting these technologies be just as diverse and forward thinking. This concept is the heart of the Company as we focus on developing cybersecurity technologies that protect the rapidly expanding Internet of Things, the Cloud, and mobile computing platforms," said John McAfee, the Company's proposed Executive Chairman and Chief Executive Officer.

"The upcoming shareholder vote on September 8th will allow the Company to move forward on several of the proposed events, including acquiring technologies from D-Vasive and Demonsaw, and the rebranding of the Company to 'John McAfee Global Technologies, Inc.' The details of these proposals are provided in the Definitive Proxy Statement filed by the Company with the SEC yesterday. In the meantime, the Company and its targeted acquisitions are moving ahead with the development and launch of several products."

Recent Product Highlights:

  • Launch of Demonsaw 3.0, a secure and decentralized cross-platform information-sharing application with end-to-end encryption and without client P2P.
  • Announced development of Clear Skies, a revolutionary new platform designed to allow a company to implement a layer of security for data stored in the Cloud, which is powered by the Demonsaw technology.
  • Introduced Sentinel MGT, a cybersecurity product designed to protect corporate and enterprise intranets from sophisticated hacking threats, based on technology purchased from Cyberdonix.
  • Assumed the development and ownership of e-Tagged technology, a cyber security product designed to alert and detect the identity of approaching individuals and vehicles.

Recent Corporate Highlights:

  • Appointed technology pioneer, Nolan Bushnell, as an independent member of the Company's Board of Directors
  • Established several advisory boards to guide development across different market segments
    • Hacker Advisory Board was established to help steer the Company's technology in the ever changing field of cyber security threats, with members that include world renowned hackers Chris Roberts, Bryce Case, Alexander Heid, Bryan Seely and Vinny Troia.
    • Cryptocurrency Advisory Board was established to ensure MGT provides the most state of the art products to its customers, and includes members such as Roger Ver, aka "Bitcoin Jesus," Erik Voorhees and Bruce Fenton.
    • Emerging Large Scale Technology Advisory Board established to support cybersecurity products that address the needs of the intricate field of securing critical large scale cyber systems and its increasing connection to, and dependence on mobile devices, with members that include Steve Orenberg, former President of Kaspersky Labs.

Financial Highlights for the second quarter of 2016 
Cash used in operations was $2.1 million in the second quarter of 2016, an increase of $1.7 million, as compared to the quarter ended March 31, 2016. The increase was primarily driven by legal and professional fees incurred in connection with the proposed D-Vasive acquisition. Such costs are expected to be materially lower in the current quarter as well as next quarter.

Cash and cash equivalents were $1.1 million as of June 30, 2016, compared with $0.3 million as of December 31, 2015. Post quarter-end, the Company completed an offering of unsecured promissory notes with net proceeds of $2.1 million. As of August 15, 2016, the Company has $2.9 million in cash plus $1.7 million in marketable securities.

Financial Results follow; per GAAP requirements, the operations of DraftDay.com are treated as discontinued operations.  For further information, please refer to MGT's Form 10-Q filed this morning with the SEC, and available at the Company's corporate website, www.mgtci.com, or at www.sec.gov.

Investor Conference Call 
Management will hold a conference call with investors the week of September 12, 2016. During the call management will provide an update on its business strategy and cybersecurity solutions. Details for the call will be announced one week prior.

About MGT Capital Investments, Inc. 
MGT Capital Investments, Inc. (NYSE MKT: MGT) is in the process of acquiring a diverse portfolio of cyber security technologies. With cyber security industry pioneer, John McAfee, at its helm, MGT Capital is positioned to address various cyber threats through advanced protection technologies for mobile and personal tech devices, including tablets and smart phones.  The Company is currently in the process of acquiring D-Vasive, a provider of leading edge anti-spy software, and Demonsaw, a provider of a secure and anonymous file sharing software platform.

MGT Capital intends to change its corporate name to "John McAfee Global Technologies, Inc." upon closing of the D-Vasive transaction.

For more information on the Company, please visit http://ir.stockpr.com/mgtci.

Forward–looking Statements
This press release contains forward–looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward–looking statements." MGT's financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward–looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward–looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.

Investor Contact

Garth Russell 
Managing Director 
KCSA Strategic Communications 
grussell@kcsa.com 
212.896.1250

Media Contact

Tiffany Madison 
Director of Corporate Communications 
MGT Capital Investments, Inc.
tmadison@mgtci.com
469.236.9569

 

 

MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per–share amounts, unaudited)





June 30, 2016



December 31, 2015

Assets








Current assets








Cash and cash equivalents


$

1,100



$

359

Prepaid expenses and other current assets



141




61

Investments available for sale



495




444

Notes receivable



640




1,575

Total current assets



2,376




2,439









Non–current assets








Restricted cash






39

Property and equipment, at cost, net



25




35

Intangible assets, net






730

Goodwill






1,496

Note receivable



45




Investments, at cost



1,530




1,380

Total assets


$

3,976



$

6,119









Liabilities and equity








Current liabilities








Accounts payable


$

111



$

63

Accrued expenses



16




15

Other payables






1

Total liabilities



127




79









Commitments and contingencies








Redeemable Convertible Preferred stock – temporary equity








Preferred stock, Series A Convertible Preferred, $0.001 par value, 1,500,000 shares authorized at June 30, 2016 and December 31, 2015; No shares outstanding at June 30, 2016 and 10,608 shares outstanding at December 31, 2015.






Stockholders' equity








Undesignated Preferred stock, $0.001 par value, 8,583,840 shares authorized at June 30, 2016 and December 31, 2015. No shares issued and outstanding at June 30, 2016 and December 31, 2015






Common stock, $0.001 par value; 75,000,000 shares authorized; 25,847,017 and 17,928,221 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively



26




18

Additional paid–in capital



315,430




311,167

Accumulated other comprehensive income / (loss)



81




(1,206)

Accumulated deficit



(311,374)




(303,944)

Total stockholders' equity



4,163




6,035

Non–controlling interests



(314)




5

Total equity



3,849




6,040









Total equity, liabilities, redeemable convertible preferred stock and non–controlling interest


$

3,976



$

6,119

 

 

 


MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per–share amounts, unaudited)





Three months ended June 30,



2016



2015

Revenues


$



$

14









Operating expenses








General and administrative



3,769




586









Operating loss



(3,769)




(572)









Other non–operating (expense) / income








Interest and other income



11




5

Loss on sale of investments



(462)




Impairment of goodwill



(1,496)




Impairment of intangible assets



(673)







(2,620)




5









Net loss from continuing operations before non–controlling interest



(6,389)




(567)









Net loss from discontinued operations – DraftDay.com






(283)









Net loss before non–controlling interest



(6,389)




(850)









Net loss attributable to non–controlling interest



296




22









Net loss attributable to Common stockholders


$

(6,093)



$

(828)









Other comprehensive loss








Reclassification adjustment for loss included in net Loss



775




Unrealized holding gain



82




Comprehensive loss


$

(5,236)



$

(828)









Per–share data








Basic and diluted loss per share – continuing operations


$

(0.29)



$

(0.04)

Basic and diluted loss per share – discontinued operations






(0.02)

Basic and diluted loss per share


$

(0.29)



$

(0.06)









Weighted average number of Common shares outstanding



21,228,156




13,578,181

 

 

 

MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per–share amounts, unaudited)





Six months ended June 30,



2016



2015

Revenues


$



$

14









Operating expenses








General and administrative



4,423




1,651









Operating loss



(4,423)




(1,637)









Other non–operating (expense) / income








Interest and other income / (expense)



36




(36)

Loss on sale of investments



(1,193)




Impairment of goodwill



(1,496)




Impairment of intangible assets



(673)







(3,326)




(36)









Net loss from continuing operations before non–controlling interest



(7,749)




(1,673)









Net loss from discontinued operations – DraftDay.com






(558)









Net loss before non–controlling interest



(7,749)




(2,231)









Net loss attributable to non–controlling interest



319




109









Net loss attributable to Common stockholders


$

(7,430)



$

(2,122)









Other comprehensive loss








Reclassification adjustment for loss included in net Loss



1,205




Unrealized holding loss



82




Comprehensive loss


$

(6,143)



$

(2,122)









Per–share data








Basic and diluted loss per share – continuing operations


$

(0.38)



$

(0.12)

Basic and diluted loss per share – discontinued operations






(0.05)

Basic and diluted loss per share


$

(0.38)



$

(0.17)









Weighted average number of Common shares outstanding



19,578,022




12,373,621

 

 

Logo - http://photos.prnewswire.com/prnh/20130409/NY91046LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mgt-provides-quarterly-corporate-update-300314012.html

SOURCE MGT Capital Investments, Inc.

Share this story!