Blockchain
SRAX Announces Non-Reliance on Previously Issued Financial Statements
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Social Reality, Inc. (NASDAQ: SRAX), a digital marketing and consumer data management technology company, today announced that on April 7, 2019, management of Social Reality, Inc. (the “Company”) concluded and the audit committee of the Company has concurred that the Company’s previously issued quarterly and year-to-date unaudited consolidated financial statements for March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018 and that its audited consolidated financial statements for the year ending December 31, 2017 should no longer be relied upon. Similarly, related press releases, earnings releases, and investor communications describing the Company’s financial statements for these periods should no longer be relied upon. The errors identified are all non-cash and primarily related to the Company’s classification of certain outstanding warrants with provisions that allow the warrant holder to force cash redemption under certain circumstances.
Based on its preliminary assessment, the Company is providing the following estimates regarding the aggregate impact of these errors on consolidated total current liabilities, total liabilities, equity, other income, net income (loss) and income (loss) per share, calculated in accordance with accounting principles generally accepted in the U.S., for each of the periods presented:
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SOCIAL REALITY, INC. |
|||||||
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 |
|||||||
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(Unaudited) |
|||||||
|
AS |
Restated |
||||||
|
YTD |
YTD |
||||||
|
2018 |
Adjustments |
2018 |
|||||
|
Revenues |
$ 8,823,592 |
$ 8,823,592 |
|||||
|
Cost of revenue |
2,902,179 |
2,902,179 |
|||||
|
Gross profit |
$ 5,921,413 |
$ 5,921,413 |
|||||
|
Loss from operations |
$ (8,492,866) |
$ (8,492,866) |
|||||
|
Other income (expense) |
|||||||
|
Total interest expense |
$ (2,772,448) |
$ (2,772,448) |
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|
Loss on repricing of Series A warrants |
$ – |
$ – |
|||||
|
Accretion of put warrants |
$ 800,000 |
$ 800,000 |
|||||
|
Accretion of debenture warrants |
$ 800,000 |
$ 800,000 |
|||||
|
Accretion of Leapfrog warrants |
$ 600,000 |
$ 600,000 |
|||||
|
Loss (Gain) on Sale of Fixed Assets |
$ 23,978,389 |
$ 23,978,389 |
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|
Other Income |
$ 21,210,439 |
$ 2,200,000 |
$ 23,410,439 |
||||
|
Net Income (loss) |
$ 12,717,573 |
$ 2,200,000 |
$ 14,917,573 |
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Net (loss) income pershare, basic |
$ 1.59 |
$ 1.86 |
|||||
|
Net (loss) income pershare, diluted |
$ 1.59 |
$ 1.86 |
|||||
|
Weighted average shares outstanding, basic |
8,008,717 |
– |
8,008,717 |
||||
|
Weighted average shares outstanding, diluted |
8,008,717 |
– |
8,008,717 |
||||
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SOCIAL REALITY, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
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YEAR ENDED DECEMBER 31, 2017 |
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|
AS |
Restated |
||||
|
Full Year |
Full Year |
||||
|
2017 |
Adjustments |
2017 |
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|
Revenues |
$ 23,348,714 |
$ 23,348,714 |
|||
|
Cost of revenue |
9,328,893 |
9,328,893 |
|||
|
Gross profit |
$ 14,019,821 |
$ 14,019,821 |
|||
|
Loss from operations |
$ (3,843,679) |
$ (3,843,679) |
|||
|
Other income (expense) |
|||||
|
Total interest expense |
$ (2,815,203) |
$ (2,815,203) |
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|
Loss on repricing of Series A warrants |
$ – |
$ (100,000) |
$ (100,000) |
||
|
Accretion of put warrants |
$ 500,000 |
$ 500,000 |
|||
|
Accretion of debenture warrants |
$ (700,000) |
$ (700,000) |
|||
|
Accretion of Leapfrog warrants |
$ (1,500,000) |
$ (1,500,000) |
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|
Loss (Gain) on Sale of Fixed Assets |
$ – |
$ – |
|||
|
Other Income |
$ (2,815,203) |
$ (1,800,000) |
$ (4,615,203) |
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|
Net Income (loss) |
$ (6,658,882) |
$ (1,800,000) |
$ (8,458,882) |
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Net (loss) income pershare, basic |
$ (0.81) |
$ (1.02) |
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Weighted average shares outstanding, basic |
8,253,851 |
– |
8,253,851 |
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SOCIAL REALITY, INC. |
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CONDENSED AND CONSOLIDATED BALANCE SHEET |
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SEPTEMBER 30, 2018 |
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(Unaudited) |
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September 30 |
September 30 |
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2018 |
2018 |
||||
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As Reported |
Adjustments |
As Restated |
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Total assets |
34,341,324 |
– |
34,341,324 |
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|
Liabilities and stockholders’ equity |
|||||
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Current liabilities: |
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Accounts payable and accrued expenses |
2,475,229 |
2,475,229 |
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|
Leapfrog warrant liability |
– |
1,000,000 |
1,000,000 |
||
|
Warrant liability – Series A |
– |
1,300,000 |
1,300,000 |
||
|
Debenture warrant liability |
– |
1,600,000 |
1,600,000 |
||
|
Total current liabilities |
2,475,229 |
3,900,000 |
6,375,229 |
||
|
Secured convertible debentures, net |
2,943,109 |
– |
2,943,109 |
||
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Total liabilities |
5,418,338 |
3,900,000 |
9,318,338 |
||
|
Total stockholders’ equity |
28,922,886 |
(3,900,000) |
25,022,886 |
||
|
Total liabilities and stockholders’ equity |
34,341,224 |
– |
34,341,224 |
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|
SOCIAL REALITY, INC. |
||||||
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CONDENSED AND CONSOLIDATED BALANCE SHEET |
||||||
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DECEMBER 31, 2017 |
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Restated |
||||||
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December 31, |
December |
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|
2017 |
Adjustments |
2017 |
||||
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Total assets |
23,605,699 |
– |
23,605,699 |
|||
|
Liabilities and stockholders’ equity |
||||||
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Current liabilities: |
||||||
|
Accounts payable and accrued expenses |
5,010,815 |
5,010,815 |
||||
|
Leapfrog warrant liability |
1,700,000 |
1,700,000 |
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Warrant liability – Series A |
2,100,000 |
2,100,000 |
||||
|
Debenture warrant liability |
2,500,000 |
2,500,000 |
||||
|
Total current liabilities |
5,010,815 |
6,300,000 |
11,310,815 |
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|
Secured convertible debentures, net |
1,711,146 |
– |
1,711,146 |
|||
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Total liabilities |
6,721,961 |
6,300,000 |
13,021,961 |
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Total stockholders’ equity |
16,883,738 |
(6,300,000) |
10,583,738 |
|||
|
Total liabilities and stockholders’ equity |
23,605,699 |
– |
23,605,699 |
|||
Since the Company has not yet fully completed its review, the estimates regarding the impact set forth above are preliminary and remain subject to change.
In connection with the restatement, management has determined that a material weakness related to the accounting for financing transactions in the Company’s internal control over financial reporting existed for the periods from March 31, 2017 through December 31, 2018. The Company’s chief executive officer and chief financial officer have concluded that the Company’s disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2017 through December 31, 2018, and the Company’s management has concluded that its internal control over financial reporting was not effective as of December 31, 2018.
The Company anticipates that it will file amended Quarterly Reports on Form 10-Q for the periods ended March 31, 2018, June 30, 2018 and September 30, 2018, to amend and restate its financial condition and financial results for the affected periods as soon as practicable.
About SRAX
Social Reality, Inc. (NASDAQ: SRAX) is a digital marketing and consumer data management technology company. SRAX’s technology delivers the tools to unlock data to reveal brands core consumers and their characteristics across marketing channels. Through its blockchain identification graph technology platform, BIGtoken, SRAX has developed a consumer-managed data marketplace where people can own and earn from their data thereby providing everyone in the Internet ecosystem choice, transparency, and compensation. SRAX’s technology and tools deliver a digital competitive advantage for brands in the CPG, automotive, investor relations and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.
SOURCE SRAX
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Source: cointelegraph.com
The post Decentralized science can be the next big thing for blockchain utilization appeared first on HIPTHER Alerts.
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Blockchain-based voting solutions offer several advantages over traditional methods, including increased transparency, security, and accessibility. By recording votes on a decentralized ledger, blockchain ensures that each vote is securely stored and tamper-proof, reducing the risk of manipulation or fraud.
Moreover, blockchain-based voting systems can enhance voter participation by providing greater accessibility to remote and disenfranchised populations. Through secure digital platforms, voters can cast their ballots from anywhere, reducing barriers to participation and promoting inclusivity.
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Source: tradingview.com
The post How blockchain-based voting can restore trust in the electoral process appeared first on HIPTHER Alerts.
Binance has announced the integration of USD Coin (USDC) onto the Celo network, marking a significant step forward in expanding the utility and accessibility of USDC within the cryptocurrency ecosystem.
This integration enables users to seamlessly transfer USDC tokens across the Celo network, leveraging its high-speed and low-cost transactions. By integrating USDC on Celo, Binance aims to enhance the interoperability and accessibility of USDC, making it easier for users to engage with decentralized finance (DeFi) applications and access financial services on the Celo network.
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The collaboration between Binance, USDC, and Celo underscores the growing importance of interoperability and cross-chain compatibility within the cryptocurrency space. By leveraging the strengths of each network, users can benefit from enhanced liquidity, accessibility, and functionality when using USDC on the Celo network.
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Source: blockchain.news
The post Binance Integrates USD Coin (USDC) on CELO Network appeared first on HIPTHER Alerts.
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