Rightscorp - ( RIHT )
- RIHT is pushing to ccelerate expansion in automation, increase ingestion of content, propel their growth trend, and bring the Company towards profitability!
Rightscorp (RIHT) is a provider of monetization services for artists and holders of copyrighted intellectual property (IP). The Company's patent pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, books, and games and ensures that owners and creators are rightfully paid for their IP. Rightscorp implements existing laws to solve copyright infringements by collecting payments from illegal file sharing activities via notifications sent through Internet service providers (ISPs). The Company's technology identifies copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). Based on the fact that 22% of all Internet traffic is used to distribute copyrighted content without permission or compensation to the creators, Rightscorp is pursuing an estimated $2.3 billion opportunity and has monetized major media titles through relationships with industry leaders. http://www.rightscorp.com/
- "A 33% gain since we last reported our numbers earlier in the month is a huge jump in ISP participation," said Christopher Sabec, CEO of Rightscorp.
- "We can attribute this increase to our persistence and hard work. In addition, many ISPs work with us to help curb copyright infringement on their networks and to reduce the large amount of bandwidth that infringers use. ISP participation is one of the three key metrics we use to measure growth."
- Company increased revenues due to growth in copyrights, ISP participation, and settlements closed;
- 282% increase in revenues to $248,387 for the third quarter ended September 30, 2014, from $64,949 for the same period in 2013;
- 313% increase in revenues to $688,801 for the nine months ended September 30, 2014 from $166,875 for the same period of 2013. Revenues for first nine months 2014 have already significantly exceeded full year 2013; and
- Balance sheet improvements include a material increase in cash and cash equivalents of $2,646,388 on September 30, 2014 from $36,331 on December 31, 2013. The increases in cash and other fixed assets resulted in growth of total assets of $3,129,154 on September 30, 2014 from $146,223 on December 31, 2013.
- Closed $2.65 million in private equity financing led by institutional investors to accelerate expansion in automation, increase ingestion of content, propel growth trend, and bring Company towards profitability;
- Increased Internet Service Providers (ISPs) participation to over 140, covering an estimated 15% of homes in the U.S.;
- Reported 130,000 copyright infringement cases closed as of September 30, 2014, up from 75,000 for Q2 representing an approximate 73% increase;
- Expanded representation into the music market, secured representation agreement with Bicycle Music Company, and open discussions with other companies in different sectors; and
- Appointed Chief Operating Officer Robert Steele as President and named Brett M. Johnson as Chairman of the Board.
- Robert Steele, Rightscorp President and COO commented, "We generated an impressive 282% increase in revenues this quarter. This was driven by an increase in the number of copyrights ingested into our system from approximately 21,000 on September 30, 2013 to approximately 160,000 on September 30, 2014. Quarter over quarter growth was relatively flat due to the demands on our computer systems as the increase in copyrights ingested exceeded their capacity. The additional financing we recently closed will provide additional equipment and bandwidth to meet these demands."
- During the quarter, the company raised $2.98 million by issuance of 1,192.8 units to certain accredited investors, with each unit consisting of 10,000 shares of common stock and warrants to purchase 15,000 shares of common stock.
- The current cash reserves of $2.65 million are in excess of the $2.2 million which management believes will be required to fund business growth over the next 12 months. Moreover, as the business continues to scale at a rapid pace, we expect RIHT will turn operationally profitable during 2015 and expects the need for additional financing to reduce materially.
The company has enough cash to execute their growth strategis through the next 12 months. This is a huge deal as traders may reduce their dilution concerns and feel confident that the growth rates should continue to impress. Make sure to continue doing your research, and trade wisely. Enjoy RIHT.
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