New York, NY / ACCESSWIRE / August 21, 2014 / SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a quarterly update on Righstcorp, Inc. (OTCQB: RIHT) for fiscal Q2 2014.
Highlights of the quarter are as follows:
- 2Q14 reported revenues were $251,481, up 377% y-o-y and up 34% sequentially driven by growth in ingested copyrights, participation of ISPs and closed settlements.
- As the company continues to invest in its technology and business expansion, operating expenses came in at $869,340 during 2Q14, up 104% y-o-y. RIHT reported operating losses of $743,599 as compared to losses of $400,142 in 2Q13.
- To fund its operating losses, the company raised equity capital of $1.58mn.
- During the quarter, RIHT reported a net loss of ($754,239) or ($0.01) per share as compared to net loss of ($487,930) or ($0.02) per share in 2Q13.
In addition, we note the following highlights:
Robust Business Expansion; Strongest Quarter till-date
During the quarter, the company expanded its authorized copyright catalog to over 1.5 million which included many award winning films, best-selling author and 16 songs from a recent Billboard hot 100. In addition, active copyrights ingested into the company’s automated search system increased to around 100,000 as compared to 21,000 last year. The quarter also saw an increase in participation from ISPs with the company reporting payments from over 140 ISPs, 100% increase over last year, and now covering 15% of broadband subscribers in the U.S. The quarter also witnessed closure of 75,000 cases of copyright infringements. The company expanded its copyright representation into the film and video market and entered into representation agreements with Rotten Records and The Royalty Network.
Continued equity financing to fund business growth
During the quarter, the company received $1.58 million from issue of common stock. The company had cash reserves of $767,581 which it believes will be adequate to fund operations for four months. To fund its capital requirements of an estimated $1.8 million over the next 12 months, RIHT intends to utilize the $300,000 available from the Hartford Equity, Inc financing and $600,000 from the Seaside 88 financing. As the business continues to scale at a rapid pace, we expect RIHT will turn operationally profitable during 2015 and hence expect the need for additional financing to reduce materially.
“We continue to believe that given the huge addressable market for settlement of online P2P copyrights infringement and the unique technology and business model adopted by RIHT, will enable it to achieve exponential revenue growth going forward. The current financial year will continue to witness operating losses as the company continues to focus on business expansion but we expect operational breakeven during 2015 post which additional financing requirements, either debt or equity dilution, will decrease substantially. Our estimates remain unchanged and our price target remains $0.89,” commented Ajay Tandon, CEO of SeeThruEquity.
The report is available at: RIHT Quarterly Update Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, CapitalIQ, FactSet, and Zack’s.
Please review important disclosures on our website at http://www.seethruequity.com/.
About Righstcorp, Inc.
Rightscorp (RIHT) is a leading provider of monetization services for artists and holders of copyrighted Intellectual Property (IP). The Company’s patent pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, books and games and ensures that owners and creators are rightfully paid for their IP. Rightscorp implements existing laws to solve copyright infringements by collecting payments from illegal file sharing activities via notifications sent through Internet Service Providers (ISPs). The Company’s technology identifies copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). Based on the fact that 22% of all Internet traffic is used to distribute copyrighted content without permission or compensation to the creators, Rightscorp is pursuing an estimated $2.3 billion opportunity and has monetized major media titles through relationships with industry leaders. http://www.rightscorp.com/
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson Reuters One (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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