EFactor Corporation Reports Second Quarter 2013 Results

SAN FRANCISCO, Aug. 13, 2013 /PRNewswire/ -- EFactor Corporation (OTCBB: STDR) a niche social network for entrepreneurs, today announced financial results for the three and six months ended June 30, 2013. The Company also filed its 10-Q with the SEC on August 13, 2013.

Second Quarter 2013 Highlights:

• Held 15 entrepreneur live and Webinar events during the quarter and launched series of events with Kevin Harrington of SHARK TANK
• Signed agreement with VCorp Filing Services, LLC to provide business formation and filing services and with Orbtalk Ltd., to provide VOIP services to EFactor.com members
• Launched www.efactor.com 's's banner advertising platform for businesses looking to connect with EFactor members
• Began "Burning Question", a one-week mentoring program with EQmentor to help entrepreneurs gain instant access to certified mentors for urgent issues they face
• Built and launched an improved "matching" algorithm directly allowing members to create stronger connections with other members based on mutual interest and skills
• Completed acquisition of MCC International – a global public relations and communications agency specializing in the technology and life science verticals

"We are expanding our services and offerings to EFactor members on a continual basis," began Marion Freijsen, EFactor COO. "EFactor.com members are a highly focused niche of the business world which requires distinct services and products to help build and run their businesses.   Connections to relevant business partners and education on everything around running a successful company remains the #1 focus of our Company.  As such critical connections occur, our members are asking us to bundle additional services and products for them.  Adding onto our success with the acquisitions of EQmentor and MCC, we have added many services providers into our resources for our members and we are continually auditing other companies and services to add into our portfolio of entrepreneur-focused 'Alliance Partners'. We are equally excited about the adverting opportunities on EFactor.com and the value such advertisers, like Harvard Business School, recognize in our membership."

Revenues for the three months ended June 30, 2013 were $228,175, up 218% from $71,641 in the same period a year ago. Revenue contributions for advisory services and public relations resulted from the acquisition of MCC and revenues from EQmentor were the primary drivers of revenue growth.

Gross profit was $200,254, an increase of 198% from $67,205 in the second quarter of 2012.

Operating expenses for the second quarter of 2013 were $1,000,029 compared to $641,558 in the same period a year ago.  Sales and marketing expenses were $62,883, up 57% year-over-year, resulting from increases in sales and marketing efforts to expand EFactor.com memberships.  General and administrative expenses increased to $991,361 from $504,600 in the second quarter of 2012.

Net loss and net loss per share for the three months ended June 30, 2013 were $912,865 and $0.01, respectively, compared to a $630,802 net loss and $0.02 net loss per share in the year ago period. The loss was mainly attributable to the continued development and organizational costs being incurred by the Company as it positions itself to accommodate its member's needs.

The Company had $32,284 in cash and working capital of $457,267 at June 30, 2013. Accounts receivable increased from $20,982 to $146,505 at June 30, 2013.

EFactor secured a line of credit on June 7, 2013 that provides up to $750,000 for a period of twenty four months. The outstanding balance on this line was $300,000 at June 30, 2013.

Cash outflows from operations for the six months ended June 30, 2013 were $616,657, down from $935,574 of outflows in the first six months of 2012. The Company spent $225,001 on capital expenditures in the first six months of 2013 on website and infrastructure investments.

On February 14, 2013, EFactor acquired 100% of MCC International Ltd. ("MCC") in an all common stock transaction.  MCC is a public relations and communications agency, based in the United Kingdom, promotes high and emerging technology and science companies, as well as professional service organizations, from entrepreneur start-ups and spin-offs to global consumer brands.

About EFactor Corporation

EFactor Corp., the world's largest entrepreneurial community, provides its members with the people, tools, marketing and expertise to succeed and make real, trustworthy and lasting connections. At the core of EFactor is a strong algorithm that allows members to not only connect with a lot of people, but with the right people. In addition, EFactor provides knowledge, facilitates preparing for funding and resources to reduce business costs, delivered through a unique mix of online social networking and offline domestic and international events.  

EFactor has over one million members in 222 countries across 240 industries. It is incorporated in the US and headquartered in San Francisco.

EFactor Corp. is also the parent company to a number of subsidiary service organizations including, a UK communications and public relations agency and a company that delivers matching software for mentors to find the best mentees.  For more information, visit http://www.efactor.com.

The EFactor Value
EFactor is a social network designed to support you as your business grows, along every step of your journey. We'll be there to congratulate you every time you win and will coach and inspire you whenever you feel frustrated by setbacks. You can count on us to connect you with the right people for you and your company and offer you the resources and talent that will help you succeed. We are highly motivated everyday people who genuinely care about our team and customers. We cheer each other on and have each other's back. We get to see our ideas come to life every single day. We're entrepreneurs, contributing our expertise to the community.

Company:
Marion Freijsen – Co-Founder/COO
EFactor Corp.
Main: +1 650 380 8280
Email: marion@EFactor.com
EFactor email: http://www.EFactor.com/marion

Investor Relations Contact:
John Mattio, Sr. Vice-President
MZ North America
Main: (212)301-7130
Direct: (212) 301-7131
Email: john.mattio@mzgroup.us

SOURCE EFactor Corporation