EZTD Inc. Reports Full-Year 2015 Net Revenue of $25.9 Million, an Increase of 29% Over Prior Year

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Positive EBITDA of $17 Thousand Compared to Prior Year EBITDA Loss of
$1.7 Million

Number of Active Customers Almost Doubled

TEL AVIV, Israel–(BUSINESS WIRE)–EZTD Inc. (OTCQX:EZTD), a worldwide leader of online binary options
trading, reports financial results for the year ended December 31, 2015.

Financial Highlights Include:

  • Net revenues for the year ended December 31, 2015 increased by 29% to
    $25.9 million, from $20.1 million in the year ended December
    31, 2014.
  • Annual volume of transactions (US $) for the year ended December 31,
    2015 increased 18% to $97 million, compared with $82.1 million in 2014.
  • The number of transactions for 2015 increased to 2,076,000, compared
    with 952,000 in 2014.
  • The number of new customers was 57,400 at the end of December 2015,
    compared with 28,900 for the year ended December 31, 2014.
  • The company achieved positive Adjusted EBITDA* of $17 thousand for the
    year ended December 31, 2015 compared with an Adjusted EBITDA* loss of
    $1.6 million in 2014.
  • Net loss for the year ended December 31, 2015 was $6.2 million or
    $0.06 per share compared with a net loss of $8.9 million or $0.10 per
    share for the year ended December 31, 2014.

Recent Corporate Highlights Include:

  • EZTD became fully licensed to operate in Japan, one of the largest
    markets worldwide for Forex (“FX”) and Contracts for Difference
    (“CFDs”), following its acquisition of EZInvest Securities Co. Ltd., a
    Japanese foreign exchange company.
  • EZTD’s stock began trading in the U.S. on the OTCQB and was
    subsequently uplisted to the OTCQX and the company initiated a
    corporate investor awareness program.
  • EZTD continued to build brand equity through expanded partnerships
    with Premier Soccer League teams across Europe, adding Tottenham
    Hotspur Football Club in England and AS Monaco Football Club to its
    roster. EZTD now has six partnerships with major professional athletic
    teams across Europe.
  • EZTD strengthened its proprietary cutting-edge technology through
    enhanced artificial intelligence-based client profiling to deliver
    relevant real-time financial information.

Shimon Citron, CEO of EZTD Inc., said “This was an extremely successful
year for EZTD in many respects, as the company executed on its strategy
to increase its customer base and the value of each customer. We
accomplished our results through strong business intelligence, entering
new international markets, and strengthening our technology and mobile
platforms.”

“We entered Japan, one of the largest markets for FX and CFDs, and are
making plans to expand into other markets in Asia and the Middle East.
We are also enhancing our mobile software, which we believe will
maximize our growth potential with even greater competitive advantages
where the demand for our electronic trading platform is rapidly
expanding,” Mr. Citron continued.

He added, “Our cutting-edge business intelligence has enabled us to
seize new business opportunities in a cost-effective manner and optimize
the conversion of site visitors into customers through proactive
engagement with consumers using real-time analytics. Its unique
retention methodology provides automated real-time response to our
clients’ trading needs, so they always receive strong customer support.”

Mr. Citron concluded, “We are immensely proud of our company’s success
this year and look forward to another year of growth in 2016.”

About EZTD

Launched in 2011, EZTD Inc. (F/K/A EZTRADER Inc.), www.eztd.info/
(United States) (OTCQX: EZTD) is one of the pioneers of secure and
regulated online binary trading, and maintains its position as a
leading, reputable and reliable binary options platform. EZTD offers
24/7 trading on more than 120 assets including commodities, stocks,
currency pairs and indices. Currently available in more than 11
languages, EZTD is growing rapidly and continues to seek exciting
opportunities to further enhance its presence throughout Europe and
Asia. EZTD’s advanced mobile app is one of the most user-friendly and
secure trading apps and is available for both Android
and iPhone.
EZTrader.com is wholly owned and operated by its wholly-owned
subsidiary, WGM Services Ltd., with operations authorized by CySEC
throughout Europe. EZTD also operates in Japan through its wholly-owned
subsidiary, EZInvest Securities Co. Ltd.

Safe Harbor Statement

This press release contains forward-looking statements. In some cases
these forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “believe,” “anticipate,
“expect,” “plan,” “may,” “will,” “should,” “potential,” or in each case,
their negative or other variations thereon or comparable terminology,
although not all forward-looking statements contain these words. For
example, forward-looking statements are used in this press release when
it is discussed that enhancing its mobile software is expected to
improve the company’s growth potential. These forward-looking statements
and their implications are based on the current expectations of the
management of EZTD only, and are subject to a number of factors and
uncertainties, many of which are beyond the control of EZTD, and cannot
be predicted or quantified and consequently, actual results may differ
materially from those expressed or implied by such forward-looking
statements. EZTD undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. For a more detailed description of the risks and
uncertainties affecting EZTD, reference is made to the heading “Risk
Factors” in EZTD’s Annual Report on Form 10-K filed with the Securities
and Exchange Commission.

-Financial Tables Follow-

       
*RECONCILIATION OF EBITDA AND ADJUSTED EBITDA TO NET LOSS FOR THE
YEAR ENDED DECEMBER 31, 2015 AND 2014.
U.S. dollars in thousands.
 
Year ended
December 31,

2015

  December 31,

2014

Unaudited
Net loss $ (6,154) $ (8,942)
Add: Financial expenses, net 2,789 1,441
Add: Income taxes
Add: Depreciation and amortization 538 114
Add: Impairment of bank deposits       4,122
EBITDA   (2,827)     (3,265)
Add: Other expense 1,096
Add: Stock-based compensation   1,748     1,644
Adjusted EBITDA $ 17   $ (1,621)
 

The table above reconciles net income to EBITDA and Adjusted EBITDA.
EBITDA is defined as net income before net interest expense, income
taxes, depreciation and amortization and a loss due to the bankruptcy of
Corporate Commercial Bank in Bulgaria, which is not relevant to
forward-looking analyses and is not linked to the company’s operational
performance. Adjusted EBITDA is defined as EBITDA before other operating
expenses related to the acquisition of a subsidiary in Japan and a
regulatory fine, and expenses related to stock-based compensation.
Although EBITDA and Adjusted EBITDA are not measures of performance
calculated in accordance with GAAP, management believes that they are
useful to the company and to an investor in evaluating the company
because they are widely used measures to evaluate a company’s operating
performance.

               

Non-GAAP Financial Measures

 

Year
ended
12/31/15

Year
ended
12/31/14

 
GAAP operating loss $ (3,365 ) $ (7,500 )
 
Amortization of acquired intangible assets $ 20 $ 39
 
Stock-based compensation $ 1,748 $ 1,644
 
Impairment of bank deposit $ $ 4,121
 
Non-GAAP operating loss $ (1,597 ) $ (1,695 )
 
         

CONSOLIDATED BALANCE SHEETS

U.S. dollars (in thousands)

 
December 31,
2015         2014
 
ASSETS
CURRENT ASSETS:
Segregated client cash accounts 1,501 2,343
Restricted cash 42 42
Receivable from credit card companies 1,874 700
Other current assets 856 639
 
Total current assets 4,273 3,724
 
 
NON-CURRENT ASSETS:
Property and equipment, net 2,389 834
Intangible assets, net 380
 
Total non-current assets 2,769 834
 
Total assets 7,042 4,558
 
December 31,
2015 2014
CURRENT LIABILITIES:
Short-term loan 594
Obligation to customers 3,922 3,127
Financial liabilities 109
Accounts payable 1,235 1,043
Accrued expenses and other accounts payable 1,909 1,933
Convertible loans 4,943 5,088
Total current liabilities 12,712 11,191
 
LONG TERM LIABILITIES:
Accrued severance pay, net 230 110
Total liabilities 12,942 11,301
EQUITY (DEFICIENCY)
Common stock of $ 0.001 par value:
Authorized: 300,000,000 shares at December 31, 2015 and 2014.

Issued and outstanding: 115,895,731 shares at December 31, 2015
and 94,385,302 at December 31, 2014.

 

116 94
Additional paid-in capital 34,875 27,900
Accumulated deficit (40,891) (34,737)
Equity (deficiency) (5,900) (6,743)
Total liabilities and equity 7,042 4,558
 
             

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars (in thousands, except share
and per share data)

 
Year ended December 31,
2015 2014
Revenues, net 25,914 20,114
Operating expenses:
Sales and marketing 20,942 17,410
General and administrative 4,698 3,073
Research and development 1,892 1,366
Stock-based compensation 1,748 1,644
Impairment of bank deposit 4,122
Total operating expenses 29,280 27,615
Operating loss (3,366) (7,501)
Financial expenses, net (2,788) (1,441)
 
Net loss before taxes on income (6,154) (8,942)
Taxes on income
Net loss attributable to the Company (6,154) (8,942)
Total basic and diluted net loss per share (0.06) (0.10)
Weighted average number of common stock used in computing basic and
diluted net loss per share
104,974,466 90,579,670
 

Contacts

Dian Griesel Int’l.
USA:
Investor Relations:
Cheryl
Schneider, 212-825-3210
or
Media:
Susan Forman,
212-825-3210