WORLD NEWS – US – NETE: Third-quarter revenue is improving despite ongoing closures in New York and California


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Net Element (NASDAQ: NETE) shows an impressive workforce despite ongoing closures in New York with a large number of clients in the restaurant business. The administration claims that the US economy is running on the Sunbelt and that businesses could be gangs if locked states open their doors. While it is impossible to predict when this will happen, one day we would expect the Net Element business to rebound sharply.. . With 45% of its customers in the restaurant business, this is the single most important factor for improvements in Net Element card processing volumes. Another meaningful factor is tourism, especially in Florida, which is influenced by people’s perception of travel safety as well as quarantine requirements in various states..

However, revenues improved sequentially despite these headwinds. Third-quarter revenue was $ 16. 7 million, down slightly from $ 16. 7 million a year ago but up from $ 13. 7 million in the second quarter of 2020. North America sales are up 1% year-over-year at $ 16. 1 million, while the international level has decreased by 26. 1% to $ 662,000 from $ 896,000 in the third quarter of 2019 and $ 741,000 in the second quarter of 2020.

Margins for North America are down to 12. 4% versus 15. 8% a year ago. International sales margins improved to 28. 0% versus 25. 8% a year ago. The total gross margin was 13. 0% versus 16. 3% a year ago. The operating loss was $ 1. $ 9 million for a loss of $ 0. 9 million in the last year is mostly caused by $ 1. $ 1 million in equity-based compensation in the quarter of this year.

GAAP’s loss to common shareholders was $ 2. 3 million versus a million dollars last year. All increase is attributable to inventory-based compensation of $ 1. 1 million in the 2020 quarter. The company always owns one quarter of the large equity-based companies and this year it was in the third quarter while last year it was in the second quarter. The GAAP non-compliant loss decreased to $ 1. 2 million for $ 1. 0 in the third quarter of 2019. All other expense items (other than equity-based compensation) decreased as the company cut staff earlier in the year, except for loan loss provisions, which were $ 169,000 higher this year..

GAAP’s loss per share was $ 0. 52 for $ 0. 24 while the non-GAAP loss per share was $ 0. 28 per share compared to a $ 0 loss. 24 per share in the past year.

This quarter there were 4. 5 million basic traded shares for 4. $ 2 million last year. On November 11, 2020, the number of shares was 4. 8 million shares.

On September 30th, Net Element earned $ 2. 1 million cash, working capital 1 dollar. 9 million and $ 10. 2 million dollars from 10 dollars. 0 million last quarter. In the quarter, Net Element received cash on three tranches of RBL promissory notes:

• On August 11, 2020, total amount of $ 707,000 for 66,190 shares of common stock.

• On August 21, 2020, $ 401,000 grossed for 45,654 shares of common stock.

• On September 25, 2020, a total of $ 426,000, versus 50,000 shares of common stock.

In the third quarter of 2020, the net component generated a negative cash flow of $ 892,000 and a negative free cash flow of $ 1. 5 million. Free cash flow has been affected by changes in leases and leasehold improvements as the company relocates office space from one part of the building to another..

Net Element is still working hard to close the deal with Mullen Technologies. Mullen is still in the process of scrutiny and the S-4 document is being drafted. We expect to see it in advance by the end of the year.

Mullen Technologies itself is making progress with its plans to sell and produce electric vehicles in the United States. It began building its pilot manufacturing facility in October and has also begun taking pre-orders for its $ 55,000 SUV MX-05.. . It reuses R&D’s High Voltage Battery Center as a test facility for the SUV line. Construction is due to be completed by April 2021 and we have no information that this timeline has changed. There the MX-05 SUVs will be assembled to be delivered to customers by the second quarter of 2022. The facility is designed to assemble up to a thousand SUVs annually with other possible models at a later date. The company said it plans to hire 100 people to assemble the SUV, battery, conduct an R&D, and provide warehouses.. Once finished, the plant will build prototypes that we will use to get government approval and certification, a process that should take 16 months.. After that, the company could start handing out to consumers. Customers can also pre-order the imported Dragonfly K50 super sports car from Mullen.

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NASDAQ: NETE, Net Element, Stock

World News – US – NETE: Third-quarter 2020 revenue improving despite continued shutdowns in New York and California
. . Related Title :
NETE : Q3 2020 Revenue Improves Despite Ongoing Lockdowns in New York and California
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