"I became CEO at the start of the third quarter with the acquisition of my company, Adaptive Media, so the second quarter report describes results that occurred prior to my tenure at Mimvi," said Mimvi CEO Qayed Shareef. "Nonetheless, Mimvi saw a healthy percentage increase in revenues, and roughly half of the losses in the quarter can be attributed to expenses related to stock, option, and warrant, issuances, plus the write-down of the assets acquired in the Lone Wolf acquisition.
"As of July 1, it's a different Mimvi, and you will see a line in the sand with respect to financial and operational performance," Shareef continued. "A solid team of media-tech executives have stepped in to run the company. We have a proven business model, solid technology platform, customers and expanding revenues, and we're in the center of the fastest-growing and most lucrative segments of the multi-billion dollar digital marketing industry. I think investors will be pleased when they see Adaptive Media's historical audited financials in mid-September, and when Mimvi's Q3 financial report is released in mid-November."
Shareef added, "As I reported last week, we made some quick, bold moves in my first month as CEO to substantially cut Mimvi's burn-rate, and the impact of these moves will really start showing up come Q4. At Adaptive Media, we are in the process of adding several key, revenue-focused individuals, who will help take the company to the next level."
Shareef stated that TrepLabs, Mimvi's joint-venture with Entrepreneur Media, is on track to launch in September, and that he remains confident in achieving the revenue goals he outlined during the July 24 investor conference call.
On the subject of financing and capital needs, Shareef commented, "We are laser focused on achieving financial independence, and have a good handle on how much capital we will require to get to break-even levels. Our goal is to achieve this in the first half of 2014. We are mindful that all financings dilute our shareholders, and as our largest shareholder, it impacts me the most, so I'm highly motivated to be fiscally prudent. We have incredibly supportive, friendly financial partners who have reaffirmed their commitments to providing us the resources that we need."
"We have good reason to be optimistic about the opportunity in front of us," Shareef concluded. "I look forward to showing investors significant progress in our operating results in the quarters ahead."
