GlobeNewswire Inc | Aug 26, 2020 08:30AM EDT

August 26, 2020

Company Expects Fiscal 2020 Revenues to Grow to $22.0 Million

Boca Raton, FL, Aug. 26, 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 second quarter ended June 30, 2020.

Management Commentary

The second quarter of 2020 witnessed the addition of our newly acquired Wild Sky Media, establishing new synergies and efficiencies that are further propelling growth, said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. Our success in growing our platform over the last two months has created a new perception within the industry, as we position ourselves as a leading end-to-end digital media and advertising services platform. This addition will enable us to capture more of the advertising spend within the value chain driving us toward our $22.0 million revenue guidance for fiscal 2020.

Our most recent acquisition, Wild Sky Media, an interactive media company that reaches over 30 million unique monthly users, has been immediately accretive and represents a significant growth opportunity as we continue to integrate them into the Bright Mountain Media platform. Their robust, complimentary portfolio of family-oriented websites provides access to valuable demographics, further expanding our reach as a Company. So far it has been a model acquisition by which we can measure future success against.

We have continued to adapt to a changing digital advertising landscape in response to the COVID-19 pandemic. We look forward to the second half of 2020 as commercial accounts refocus their messaging and the political ad season ramps up. Bright Mountain is well positioned to capture a share of this ad spend due to our ability to efficiently connect brands with highly targeted consumer demographics.

Finally, we continue to explore potential acquisitions, during what we are finding to be a buyers market. Given what we have accomplished to-date, taken in tandem with our pipeline, I believe we are well positioned to deliver value to our shareholders over the long-term. We look forward to sharing further updates on our emerging story at upcoming investor conferences in the third quarter of 2020, concluded Speyer. Second Quarter 2020 Financial Summary

-- Total revenue for the second quarter of 2020, was $2.3 million, compared to revenue of $0.7 million in the same year-ago quarter. The increase in revenue was due to the acquisitions of Wild Sky Media, Oceanside Media and MediaHouse, in spite of the negative influence of Covid-19 on the digital advertising market.

-- Selling, general and administrative expenses for the second quarter of 2020 were $4.4 million, compared to $0.8 million in the same year-ago quarter. The increase in selling, general and administrative expenses was due to the acquisitions of Oceanside, MediaHouse and Wild Sky which are not reflected in the prior period expenses

-- Net loss for the second quarter of 2020 was $3.1 million, compared to a net loss of $0.7 million in the same year-ago quarter. The increase in net loss was primarily related to an increase in operating expenses from the aforementioned acquisitions, which are not reflected in prior period expenses.

-- Cash and cash equivalents and short-term deposits were $1.9 million as of June 30, 2020, compared with $1.0 million as of June 30, 2019.

-- Cash used in operations for the second quarter of 2020 was $1.5 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

June 30, 2020 December 31, 2019 (unaudited) ASSETS Current Assets Cash and cash equivalents $ 1,905,182 $ 957,013 Accounts receivable, net 4,715,622 3,997,475 Note receivable, net 35,215 63,812 Prepaid expenses and other current assets 903,874 752,975 Current assets - discontinued operations - 1,705 Total Current Assets 7,559,893 5,772,980 Property and equipment, net 139,349 30,666 Website acquisition assets, net 24,052 48,928 Intangible assets, net 24,882,063 19,610,801 Goodwill 64,568,671 53,646,856 Prepaid services/consulting agreements - 697,500 913,182 long termRight of use asset 296,514 397,912 Other assets 448,575 35,823 Total Assets $ 98,616,617 $ 80,457,148 LIABILITIES AND SHAREHOLDERS? EQUITY Current Liabilities Accounts payable $ 8,609,805 $ 8,358,442 Accrued expenses 1,032,458 3,228,328 Accrued interest to related party 10,675 6,629 Premium finance loan payable 71,062 179,844 Deferred revenues 80,741 6,651 Long term debt, current portion 165,163 165,163 Operating lease liability, current portion 218,697 211,744 Current liabilities - discontinued - 591 operationsTotal Current Liabilities 10,188,601 12,157,392 Long term debt to related parties, net 32,670 25,689 Long term debt 18,588,440 - Deferred tax liability 433,955 581,440 Operating lease liability, net of current 82,396 198,232 portionTotal Liabilities 29,326,062 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 June 30, 2020 and December31, 2019, respectivelySeries B-1, 6,000,000 shares designated, 0and 0 shares issued and outstanding at June - - 30, 2020 and December 31, 2019,respectivelySeries E, 2,500,000 shares designated,issued and outstanding at June 30, 2020 and 25,000 25,000 December 31, 2019, respectivelySeries F, 4,344,017 shares designated,issued and outstanding at June 30, 2020 and 43,440 43,440 December 31, 2019, respectivelyCommon stock, par value $0.01, 324,000,000shares authorized, 110,257,860 and100,244,312 issued and 89,937,733 and 1,102,579 1,002,444 78,063,531 outstanding at June 30, 2020 andDecember 31, 2019, respectivelyAdditional paid-in capital 95,116,892 86,856,500 Accumulated deficit (27,009,356 ) (20,444,989 )Total shareholders? equity 69,290,555 67,494,395 Total Liabilities and Shareholders? Equity $ 98,616,617 $ 80,457,148

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

For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues Advertising $ 2,273,940 $ 716,594 $ 4,544,126 $ 1,802,050 Cost of revenueAdvertising 1,097,504 555,458 2,920,586 1,441,154 Gross profit 1,176,436 161,136 1,623,540 360,896 Selling,general and 4,387,741 804,449 8,367,119 1,720,403 administrativeexpenses Loss from (3,211,305 ) (643,313 ) (6,743,579 ) (1,359,507 )operations Other income (expense)Interest )(expense) (82,261 ) 15,041 (71,268 20,138 income, netGain onsettlement of - - - 122,500 liabilityOther income - 2,116 (215 ) 2,116 (expense)Interestexpense - (2,023 ) (5,514 ) (4,046 ) (11,715 )related partyTotal other(expense) (84,284 ) 11,643 (75,529 ) 133,039 income Net loss fromcontinuing (3,295,589 ) (631,670 ) (6,819,108 ) (1,226,468 )operations Loss fromdiscontinued - (72,206 ) - (187,670 )operations Net loss (3,295,589 ) (703,876 ) (6,819,108 ) (1,414,138 )before tax Income tax 190,242 - 254,741 - benefit Net Loss (3,105,347 ) (703,876 ) (6,564,367 ) (1,414,138 ) Preferredstock dividendsSeries A,Series E, andSeries F (148,995 ) (823 ) (267,247 ) (74,994 )preferredstock Net lossattributable $ (3,254,342 ) $ (704,699 ) $ (6,831,614 ) $ (1,489,132 )to commonshareholders Basic anddiluted netloss for $ (0.03 ) $ (0.01 ) $ (0.06 ) $ (0.02 )continuingoperations pershareBasic anddiluted netloss for $ 0.00 $ 0.00 $ 0.00 $ 0.00 discontinuedoperations pershareBasic anddiluted net $ (0.03 ) $ (0.01 ) $ (0.06 ) $ (0.02 )loss per shareWeightedaverage sharesoutstanding - 107,427,197 64,368,972 106,148,084 63,791,361 basic anddiluted

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSJune 30, 2020(Unaudited)

For the Six Months Ended June 30, 2020 2019 Cash flows from operating activities: Net loss $ (6,564,367 ) $ (1,414,138 )Add back: loss attributable to discontinued - 187,670 operationsAdjustments to reconcile net loss to net cash used in operations:Depreciation 10,179 4,118 Amortization of debt discount 6,981 6,943 Amortization 1,999,914 66,859 Gain on settlement of liability - (122,500 )Stock option compensation expense 78,094 13,111 Stock issued for services rendered 91,718 - Non-cash acquisition fee 275,000 - Change in deferred taxes (254,741 ) - Provision for bad debt 773,944 29,338 Changes in operating assets and liabilities: Accounts receivable 1,395,191 (129,038 )Prepaid expenses and other current assets 335,100 30,927 Prepaid services/consulting agreements 215,682 260,000 Other assets 212,230 (4,703 )Right of use asset and lease liability (7,485 ) - Accounts payable (670,790 ) 186,087 Accrued expenses (847,068 ) (21,918 )Accrued interest ? related party 4,046 1,168 Deferred revenues 40,757 (1,260 )Net cash (used in) continuing operations for (2,905,615 ) (907,336 )operating activitiesNet cash (used in) discontinued operations - (162,605 )Net cash (used in) operating activities (2,905,615 ) (1,069,941 ) Cash flows from investing activities: Purchase of property and equipment (4,055 ) (16,036 )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 (24,036 )activities Cash flows from financing activities: Proceeds from issuance of common stock, net 2,170,562 1,515,200 Payments of premium finance loan payable (108,782 ) (47,992 )Dividend payments (55,007 ) (149,165 )Principal payments received (funded) for 28,597 (64,682 )notes receivableNote receivable funded - (984,242 )Note payable funded 464,800 - Net cash provided by financing activities 2,500,170 269,119 Net increase (decrease) in cash and cashequivalents including cash and cash 948,169 (824,858 )equivalents classified within assets relatedto continuing operationsNet decrease in cash and cash equivalentsclassified within assets related to - (19,347 )discontinued operationsNet increase in cash and cash equivalents 948,169 (844,205 )Cash and cash equivalents at the beginning of 957,013 1,042,457 periodCash and cash equivalents at end of period $ 1,905,182 $ 198,252