Montreal, August 26, 2014 – IOU FINANCIAL INC. (“IOU” or “the Company”; ticker symbol IOU/TSX-V) recorded revenue for the quarter ended June 30, 2014 of $1,493,806 versus $732,188 for the quarter ended June 30, 2013. The Company closed its second quarter of fiscal 2014 with a net loss attributable to common shareholders of $424,529, or $0.01 per share, compared to a net loss of $561,761 or $0.01 per share during the same period of 2013. Excluding stock based compensation, the loss for the three month period would be $119,132 (2013:$434,208).
The Company recorded revenue during the six month period ended June 30, 2014 of $2,838,207 versus $1,208,853 for the six month period ended June 30, 2013. The Company recorded a net loss attributable to common shareholders for the six month period ended June 30, 2014 of $839,313, or $0.02 per share, compared to a net loss of $977,568 or $0.01 per share during the same period of 2013. Excluding stock based compensation, the loss for the six month period would be $495,217 (2013: $820,018).
At June 30, 2014, total assets amounted to $19,848,063 compared to $15,921,263 as of December 31, 2013, and consisted mostly of commercial loans receivable and cash. Total liabilities amounted to $9,835,635 compared to $8,688,312 as of December 31, 2013, and consisted mostly of funds borrowed from the company’s financial credit facility. Shareholders’ equity showed a surplus of $10,012,428, compared to a surplus of $7,232,951 at December 31, 2013. During the six month period ended June 30, 2014, 5,323,483 (2013: 250,000) shareholder warrants were exercised for an amount of $3,117,375 (2013: $125,000).
IOU Financial’s financial statements and management discussion & analysis for the period ended June 30, 2014 have been filed on SEDAR and are available at www.sedar.com.
About IOU Financial Inc.
IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward looking statements, whether as a result of new information, future events, or otherwise.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Chief Executive Officer
(514) 789-0694 ext. 225
Chief Financial Officer
(514) 789-0694 ext. 298