Nxt-ID,
Inc. (Nasdaq: $NXTD) Releases Preliminary Results for the Year Ended December
31, 2018 and Update on Proposed Spin Off
SEBASTIAN, Florida, March 14, 2019 – (Investorideas.com Newswire) Nxt-ID,
Inc. (NASDAQ: NXTD) (the “Company”), a
provider of healthcare devices and services as well as payment credential
management and authentication platform services, announces selected unaudited, preliminary
results for year ended December 31, 2018.
Highlights:
·
Revenue from continuing operations for year
ended December 31, 2018 was approximately $17.1 million compared to approximately
$16.0 million for the same period in 2017.
·
Gross profit from continuing operations for year ended December
31, 2018 was approximately $12.3 million compared to approximately $11.0
million for the same period in 2017.
·
Year over year gross profit growth was approximately 12%.
·
Operating expenses from continuing operations were approximately $11.7 million for year ended December 31, 2018 compared to approximately $13.1 million
for the same period in 2017.
·
Operating income from continuing operations for year ended
December 31, 2018 was approximately $0.6 million compared to an operating loss
of approximately $(2.2) million for the same period in 2017.
"Our
preliminary results for 2018 show continued steady growth in revenue and
profitability with a reduction in operating expenses of over 10%,” said Gino Pereira, Chief Executive Officer of Nxt-ID.
“We are excited about our prospects in 2019 as we build on our existing strong
base with the introduction of new products and markets during this year.”
Update on Proposed Spin-off
“The
closing date of the refinanced debt facility is now expected to be at the end
of March or early April 2019. Completion of the refinancing will enable us to
take the next step in moving forward with the planned spin-off of our Payments
Division, which we believe will increase overall value for our shareholders,”
said Gino Pereira, Chief Executive Officer of Nxt-ID.
Subject
to closing, the refinancing would remove a key covenant of the existing debt
facility and enable the Company to proceed with the proposed spin-off of its
Payment Division, which include its Fit Pay, Inc. subsidiary and other assets.
Immediately
following the spin-off transaction, Nxt-ID shareholders, who own
shares of Nxt-ID on the to-be-announced record date will own shares
of both companies. Subsequent to the record date, but prior to the date of the
distribution, which will be established by the Board, NXTD shares will trade
ex-distribution.
Preliminary
Results
The
results provided in this press release are unaudited, preliminary and subject
to completion of Nxt-ID's financial statements for the year ended December 31,
2018 in conjunction with the Company's Form 10-K filing for the same period,
and therefore they are subject to change. Nxt-ID intends to report final
results for the year ended December 31, 2018 on or about April 1, 2019, after
market close.
About
NXT- ID, Inc.
NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform
of technology products and services that enable the Internet of Things (IoT). With
extensive experience in access control, biometric and behavior-metric identity
verification, security and privacy, encryption and data protection, payments,
miniaturization and sensor technologies, NXT-ID develops and markets
groundbreaking solutions for payment and IoT applications. Its industry-leading
technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers'
mobile platforms, the Wocket™, a
next-generation smart wallet and the Flye, a digital credit card developed in
collaboration with WorldVentures.
NXT-ID includes mobile and IoT-related
subsidiaries: LogicMark, LLC, a
manufacturer and distributor of non-monitored and monitored personal emergency
response systems ("PERS") sold through dealers/distributors and the
United States Department of Veterans Affairs and Fit Pay, Inc., a proprietary technology platform that delivers end-to-end
solutions to device manufacturers for contactless payment capabilities,
credential management, authentication and other secure services within the IoT
ecosystem. Learn more about
NXT-ID at www.nxt-id.com. FitPay and the FitPay Payment Platform are the sole
property of Fit Pay, Inc. For NXT-ID
Inc. corporate information contact: info@nxt-id.com
Forward-Looking
Statements for Nxt-ID: This press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect management's
current expectations, as of the date of this press release, and involve certain
risks and uncertainties. Forward-looking statements include statements herein with
respect to the successful execution of the Company's business strategy. The
Company’s actual results could differ materially from those anticipated in
these forward-looking statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish and
maintain the proprietary nature of our technology through the patent process,
as well as our ability to possibly license from others patents and patent
applications necessary to develop products; the availability of financing; the
Company's ability to implement its long range business plan for various
applications of its technology; the Company's ability to enter into agreements
with any necessary marketing and/or distribution partners; the impact of competition,
the obtaining and maintenance of any necessary regulatory clearances applicable
to applications of the Company's technology; and management of growth and other
risks and uncertainties that may be detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission.
There
are a number of important factors that could cause the Company's actual results
to differ materially from those indicated by such forward-looking statements,
including whether the planned spin-off of the payments business is completed,
as expected or at all, and the timing of any such spin-off; whether the
conditions to the spin-off can be satisfied; whether the operational, marketing
and strategic benefits of the spin-off can be achieved; whether the costs and
expenses of the spin-off can be controlled within expectations; and general
market and economic conditions. The foregoing sets forth many, but not all, of
the factors that could cause actual results to differ from our expectations in
any forward-looking statement. Investors should consider this cautionary
statement, as well as the risk factors identified in our periodic reports filed
with the SEC, when evaluating our forward-looking statements.
Media Contacts:
Chris Orlando
+1-760-468-7273
D. Van Zant
+1-800-665-0411
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