GlobeNewswire Inc | Nov 25, 2020 05:25PM EST

November 25, 2020

Company Continues to Successfully Execute on Rollup Strategy

Boca Raton, FL, Nov. 25, 2020 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM), an end-to-end digital media and advertising services platform, has provided its financial results for the third quarter ended September 30, 2020.

Management Commentary

The third quarter of 2020 was highlighted by our continued revenue growth - a testament to the successful execution of our rollup strategy - with the goal of creating an industry leading digital media and advertising services platform, said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. We continue to integrate Wild Sky Media post-acquisition and have been satisfied with the immense contributions their team has made to the broader organization thus far, expanding our reach into exciting new demographics through a diverse website portfolio.

We are also exploring further potential acquisitions in what is shaping up to be a buyers market. Bright Mountain maintains a robust pipeline of potential acquisition candidates, though we will remain highly selective to ensure any target is accretive, reasonably valued and complementary to our core business.

2020 has been a year of growth for Bright Mountain Media and I look forward to what 2021 holds. With a robust acquisition pipeline, a growing core business and a potential uplisting on the horizon we are well positioned to create sustainable value for our shareholders over the long-term, concluded Speyer. Third Quarter 2020 Financial Summary

-- Total revenue for the third quarter of 2020 grew 132% to $4.9 million, compared to revenue of $2.1 million in the same year-ago quarter. The increase in revenue was largely due to the acquisition of Wild Sky Media, in spite of the negative influence of COVID-19 on the digital advertising market.

-- Selling, general and administrative expenses for the third quarter of 2020 were $5.5 million, compared to $2.7 million in the same year-ago quarter. The increase in selling, general and administrative expenses was due to the acquisitions of MediaHouse and Wild Sky which are not reflected in the prior period expenses

-- Net loss for the third quarter of 2020 was $56.6 million, compared to a net loss of $2.0 million in the same year-ago quarter. The increase in net loss was primarily non-cash, related to the impairment of goodwill from previous acquisitions.

-- Cash, cash equivalents and short-term deposits increased to $1.1 million as of September 30, 2020, compared with $1.0 million as of December 31, 2019.

-- Cash used in operations for the second quarter of 2020 was $2.1 million, compared with cash used in operations of $0.4 million in the same year-ago quarter.

About Bright Mountain Media

Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. Through the removal of middlemen in the advertising services process, Bright Mountain Media efficiently connects brands with targeted consumer demographics while maximizing revenue to publishers. Bright Mountain Medias assets include Bright Mountain, LLC, MediaHouse (f/k/a NDN), Oceanside (f/k/a S&W Media), and Wild Sky Media including 24 owned and/or managed websites and 15 CTV apps. For more information, please visit www.brightmountainmedia.com.

Forward-Looking Statements for Bright Mountain Media, Inc.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as should, may, intends, anticipates, believes, estimates, projects, forecasts, expects, plans, and proposes, and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to successfully integrate acquisitions., and the realization of any expected benefits from such acquisitions You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading Risk Factors in Bright Mountain Media, Inc.s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on May 14, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Contact:Greg Falesnik or Luke Zimmerman MZ Group - MZ North America 949-259-4987BMTM@mzgroup.uswww.mzgroup.us

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS

September 30, December 31, 2020 2019 (unaudited) ASSETS Current Assets Cash and cash equivalents $ 1,050,370 $ 957,013 Accounts receivable, net 5,409,605 3,997,475 Note receivable, net 13,646 63,812 Prepaid expenses and other current assets 702,054 752,975 Current assets - discontinued operations - 1,705 Total Current Assets 7,175,675 5,772,980 Property and equipment, net 119,912 30,666 Website acquisition assets, net 12,789 48,928 Intangible assets, net 12,052,337 19,610,801 Goodwill 22,150,047 53,646,856 Prepaid services/consulting agreements - 620,000 913,182 long termRight of use asset 243,549 397,912 Other assets 396,969 35,823 Total Assets $ 42,771,278 $ 80,457,148 LIABILITIES AND SHAREHOLDERS? EQUITY Current Liabilities Accounts payable $ 7,605,873 $ 8,358,442 Accrued expenses 1,933,476 3,228,328 Accrued interest to related party 12,720 6,629 Premium finance loan payable 16,671 179,844 Deferred revenues 65,512 6,651 Long term debt, current portion 1,135,000 165,163 Operating lease liability, current portion 221,763 211,744 Current liabilities - discontinued - 591 operationsTotal Current Liabilities 10,991,015 12,157,392 Long term debt to related parties, net 36,199 25,689 Long term debt 18,588,440 - Deferred tax liability 283,213 581,440 Operating lease liability, net of current 21,915 198,232 portionTotal Liabilities 29,920,782 12,962,753 Commitments and Contingencies Shareholders? Equity Convertible preferred stock, par value $0.01, 20,000,000 shares authorized,Series A-1, 2,000,000 shares designated,1,200,000 and 1,200,000 shares issued and 12,000 12,000 outstanding at September 30, 2020 andDecember 31, 2019, respectivelySeries B-1, 6,000,000 shares designated, 0and 0 shares issued and outstanding at - - September 30, 2020 and December 31, 2019,respectivelySeries E, 2,500,000 shares designated,issued and outstanding at September 30, 25,000 25,000 2020 and December 31, 2019, respectivelySeries F, 4,344,017 shares designated,issued and outstanding at September 30, 43,440 43,440 2020 and December 31, 2019, respectivelyCommon stock, par value $0.01, 324,000,000shares authorized, 114,564,060 and100,244,312 issued and 114,013,943 and 1,145,642 1,002,444 78,063,531 outstanding at September 30,2020 and December 31, 2019, respectivelyAdditional paid-in capital 96,360,804 86,856,500 Accumulated deficit (83,581,144 ) (20,444,989 )Treasury Stock at cost 550,117 shares at (1,155,246 ) - September 30, 2020Total shareholders? equity 12,850,496 67,494,395 Total Liabilities and Shareholders? Equity $ 42,771,278 $ 80,457,148

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Revenues Advertising $ 4,894,486 $ 2,113,276 $ 9,438,612 $ 3,915,326 Cost of revenueAdvertising 2,085,060 1,432,922 5,005,646 2,874,076 Gross profit 2,809,426 680,354 4,432,966 1,041,250 Selling,general and 5,493,343 2,734,203 13,860,462 4,452,490 administrativeexpenses Loss from (2,683,917 ) (2,053,849 ) (9,427,496 ) (3,411,240 )operations Other income (expense)Interest(expense) (251,779 ) 16,234 (323,047 ) 37,281 income, netGain on 935,408 - 935,408 122,500 settlementImpairment of (53,996,544 ) - (53,996,544 ) - assetsSettlement ofcontingent (750,000 ) - (750,000 ) - considerationOther income - (6,993 ) (215 ) (7,902 )(expense)Interestexpense - (2,045 ) (5,574 ) (6,091 ) (17,289 )related partyTotal other(expense) (54,064,960 ) 3,667 (54,140,489 ) 134,590 income Net loss fromcontinuing (56,748,877 ) (2,050,182 ) (63,567,985 ) (3,276,650 )operations Income (loss)from - 13,649 - (174,021 )discontinuedoperations Net loss (56,748,877 ) (2,036,533 ) (63,567,985 ) (3,450,671 )before tax Income tax 177,089 - 431,830 - benefit Net Loss (56,571,788 ) (2,036,533 ) (63,136,155 ) (3,450,671 ) Preferredstock dividendsSeries A,Series E, andSeries F (180,122 ) (52,682 ) (447,369 ) (201,484 )preferredstock Net lossattributable $ (56,751,910 ) $ (2,089,215 ) $ (63,583,524 ) $ (3,652,155 )to commonshareholders Basic anddiluted netloss for $ (0.51 ) $ (0.03 ) $ (0.59 ) $ (0.05 )continuingoperations pershareBasic anddiluted netincome (loss)for $ 0.00 $ 0.00 $ 0.00 $ (0.00 )discontinuedoperations pershareBasic anddiluted net $ (0.51 ) $ (0.03 ) $ (0.59 ) $ (0.05 )loss per shareWeightedaverage sharesoutstanding - 110,995,809 64,267,465 108,099,730 66,485,230 basic anddiluted

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSSeptember 30, 2020(Unaudited)

For the Nine Months Ended September 30, 2020 2019 Cash flows from operating activities: Net loss $ (63,136,155 ) $ (3,450,671 )Add back: loss attributable to discontinued - 174,021 operationsAdjustments to reconcile net loss to net cash used in operations:Depreciation 29,616 5,613 Amortization of debt discount 10,510 10,472 Amortization 3,289,330 120,668 Impairment of tradename - 20,800 Impairment of goodwill 42,444,971 - Impairment of intangibles 11,551,573 - Gain on settlement (935,408 ) (122,500 )Stock option compensation expense 129,105 29,074 Stock issued for services rendered 92,218 32,250 Non-cash finance fee 275,000 - Non-cash settlement of contingent 750,000 - considerationChange in deferred taxes (431,830 ) - Provision for bad debt 287,068 29,338 Changes in operating assets and liabilities: Accounts receivable 1,193,666 (808,812 )Prepaid expenses and other current assets 536,920 482,979 Prepaid services/consulting agreements 293,182 - Other assets 263,836 (17,369 )Right of use asset and lease liability (11,935 ) - Accounts payable (1,674,722 ) 1,078,205 Accrued expenses 53,950 1,070,498 Accrued interest ? related party 6,091 3,213 Deferred revenues 25,528 (4,163 )Net cash (used in) continuing operations for (4,957,486 ) (1,346,384 )operating activitiesNet cash (used in) discontinued operations - (155,739 )Net cash (used in) operating activities (4,957,486 ) (1,502,123 ) Cash flows from investing activities: Purchase of property and equipment (4,055 ) (8,746 )Cash received in acquisition - 603,744 Principal collected on notes receivable - 77,500 Notes receivable funded - (1,156,887 )Cash acquired from Wild Sky 1,357,669 - Cash paid for website acquisition - (8,000 )Net cash provided by (used in) investing 1,353,614 (492,389 )activities Cash flows from financing activities: Proceeds from issuance of common stock, net 3,586,148 1,651,410 Payments of premium finance loan payable (163,173 ) (89,154 )Dividend payments (235,129 ) (201,847 )Principal payments received for notes 44,583 - receivableProceeds from issuance of preferred stock - 250,000 Principal payment on notes payable 464,800 (64,681 )Net cash provided by financing activities 3,697,229 1,545,728 Impact on foreign exchange rates on cash - 9,818 Net increase (decrease) in cash and cashequivalents including cash and cash 93,357 (438,966 )equivalents classified within assets relatedto continuing operationsNet (decrease) in cash related to - (15,971 )discontinued operationsNet increase (decrease) in cash and cash 93,357 (454,937 )equivalentsCash and cash equivalents at the beginning 957,013 1,042,457 of periodCash and cash equivalents at end of period $ 1,050,370 $ 587,520