Frankly FRNKF

So this is how the 2017 year turned out :(

[kiskadog]

LONG ISLAND CITY, N.Y., April 2, 2018 /PRNewswire/ --  Frankly Inc.  (TSX VENTURE: TLK) (Frankly), a leader in transforming local TV broadcasters and media companies by enabling them to publish and monetize their digital content across multiple platforms, reported financial results for the fourth quarter and fiscal year ended December 31, 2017. All financial statements have been prepared in accordance with U.S. GAAP.

Full Year 2017 Financial Results (All amounts in U.S. dollars)

• Revenue increased 13% to $25.7 million from $22.8 million in 2016. The increase in revenue was primarily due to contractual changes to the company's advertising program requiring it to recognize gross revenues beyond commissions, as well as increases in usage and professional services fees.
• Net loss totaled $(17.2) million compared to $(10.7) million in 2016. The increase in net loss was due to $2.4 million increase in non-cash goodwill impairment expense, $1.0 million increase in non-cash depreciation and amortization expense, $0.9 million increase in other expense comprised primarily of expense associated with our strategic transaction retention plan initiated in the fourth quarter of 2017, $1.2 million increase in interest expense, net due to the August 2016 refinancing with Raycom and $0.5 million increase in professional fees.
• Adjusted EBITDA loss totaled $(339,000) compared to adjusted EBITDA of $335,000 in 2016 (see discussion about the presentation of adjusted EBITDA below).

Fourth Quarter 2017 Financial Results (All amounts in U.S. dollars)

• Revenue decreased 4% to $6.3 million from $6.5 million in the prior quarter, and increased 2% from $6.1 million in the fourth quarter of 2016. The year over year increase was primarily due to increases in license fees for the launch of our native mobile and OTT applications.
• Net loss totaled $(10.2) million compared to $(3.1) million in the prior quarter and $(6.3) million in the fourth quarter of 2016. Net loss for the fourth quarter of 2017 included a non-cash impairment expense of $6.5 million against the goodwill recognized on the Worldnow acquisition (completed in 2015), compared to a goodwill impairment expense of $4.2 million in the same year-ago quarter.
• Adjusted EBITDA loss was $(207,000) compared to adjusted EBITDA loss of $(180,000) in the prior quarter, and adjusted EBITDA of $104,000 in the fourth quarter of 2016 (see discussion about the presentation of adjusted EBITDA below). The higher adjusted EBITDA loss in the fourth quarter of 2017 was primarily due to higher research and development expenses to accelerate the company's product roadmap, which are intended to take advantage of increased customer opportunities in the company's pipeline in 2018, as well as an increase in professional fees concerning legal matters of the company.
• At December 31, 2017, the company had $1.9 million in cash and restricted cash. As part of our announced process to explore strategic alternatives, we are currently in negotiations concerning an additional credit facility that, if successfully completed, would provide funding needed to sustain operations through 2018.

Management Commentary
"2017 will be remembered as a pivotal year in Frankly's long-term evolution into a stronger, more innovative and, ultimately, profitable organization," said company COO and CFO Lou Schwartz. "Despite some of the hurdles we faced during the year, we still successfully managed to grow our topline, which is a further endorsement of the strength in our business model. Moving forward, we anticipate that the continued growth of Frankly Local and Frankly Data, two of our major growth and innovation-focused initiatives, will provide us with even greater monetization capabilities. We also believe the successful migration of our legacy CMS customers to our next-gen platform as well as the scheduled transition of Frankly video customers onto our new cloud-based platform, which features a more modernized workflow, will allow us to start generating additional incremental and recurring revenues beginning in 2018.

"In all, we entered the new year with a strengthened product portfolio and a growing pipeline of new business, elements we believe will drive our expansion moving forward. In conjunction with our long-term growth focus, we also recently implemented an aggressive optimization plan during the first quarter of 2018 to reduce expenses in non-strategic areas. Our ultimate goal is to achieve growth and profitability which will turn Frankly into a self-sustaining organization for the many years ahead." 

Read more at https://www.stockhouse.com/news/press-releases/2018/04/02/frankly-reports-results-for-the-fourth-quarter-and-full-year-2017#iracOMg3l2USwqqj.99