Denver, CO, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Advantego Corporation (OTCQB: ADGO) today announced financial results for the third quarter ended September 30, 2019.
For the third quarter, Advantego reported that sales increased from its digital signage and digital listing product lines to $55,114 compared with sales of $45,981 in the similar 2018 period. The net loss was $379,576, equal to a net loss of two cents per share in the current period, compared with a net loss of $239,977, equal to a net loss of two cent per share in the 2018 period. The increase was primarily due to interest expenses for financing and marketing activities. Basic weighted average shares outstanding in the 2019 period were 19,744,729, compared with 16,520,092 in the 2018 period.
For the full nine-month period, Advantego reported sales from its digital signage and digital listing product lines of $84,505, compared with sales of $161,225 in the similar 2018 period. The decrease was twofold: 1) deferral of digital signage renewal revenue to future quarters, and; 2) a reduction in the number of new automobile repair shops coming on-line each month as the network was still being built out. The net loss for the nine months in 2019 was $1,724,983, equal to a net loss per share of ten cents. Net loss for the similar nine-month period in 2018 was $786,455, equal to a net loss per share of five cents. The net loss was primarily due to increases in marketing and interest expenses. The weighted average shares outstanding for the nine months of 2019 were 17,727,171, compared with 16,020,771 in the 2018 period.
The increase in shares outstanding in the 2019 periods was due to financing activities to primarily support the Company’s strategic agreements, product development and marketing activities. Subsequent to September 30, 2019, the Company issued Common Stock for convertible debt for an increase of 80,715,727 shares. A proxy has been issued for a December 12, 2019 meeting of shareholders to approve the increase of the authorized Common Shares to 15,000,000,000 in order to accommodate possible future conversions.
Advantego CEO Robert W. (Rob) Ferguson said: “As we stated in previous communications, we have been developing products that were not available during the first part of the year which should finally contribute to sales shortly. We recently launched another network in conjunction of one of our strategic partners using our digital signage focused on the sale of audiological products through independent drug stores.
“We are currently offering our Convertible Note Disclosure Report as a stand-alone service as we build out a comprehensive equity management and reporting system for public companies.
“Additionally, at the end of last year, Advantego had signed a Strategic Partnership Agreement with manufacturer and exporter Shenzhen Ferex Electrical Co., Ltd of China to manufacture and supply electrical components and systems. The Company began offering design, engineering and manufacturing services to our customers in the beginning of 2019. Currently, the Company has a manufacturing contract to provide design and manufacturing services for two new products to which the working prototypes have been delivered and are now being tested prior to the star of manufacturing. This agreement is subject to certain financing requirements; however the Company is expecting to receive revenue from this activity in first quarter 2020.
“We experienced headwinds in the third quarter on our Aska Electronics, Ltd. contract.” Ferguson also said.
As previously announced, Aska will still provide design and services for the Company’s customers; and Advantego will provide branding, sales and distribution services in North America. Aska was to receive Series I Preferred Stock. However, no stock was issued since neither company was able to obtain a financial institution that could facilitate the transaction while avoiding certain prohibited financial structures according to Chinese law. Nevertheless, both companies remain committed to utilizing each other’s resources for future business.
ABOUT ADVANTEGO CORPORATION
Advantego Corporation (OTCQB: ADGO) is a business solutions provider that develops stand-alone digital delivery systems, electronic and enterprise software products to capitalize on niche opportunities within a specific market. The Company leverages a proprietary Intelligent Solution Platform, combining leading third-party, cutting-edge technologies with existing data and systems to deliver a turnkey specialized Business Process as a Service (BPaaS) that is both scalable and cost-effective. The Company offers a variety of stand-alone products and services tailored specifically to targeted industries, combining these with multiple software applications for large enterprises, affiliate networks and franchise operators as comprehensive, managed bundled solutions. The Company’s services also include product design, engineering and OEM manufacturing of hardware products. In addition, it licenses and distributes third-party proprietary software and hardware from a host of Strategic Partners. Website: www.advantego.com. Twitter: @Advantego.
FORWARD LOOKING STATEMENTS
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