STATEMENT ON FORWARD-LOOKING INFORMATION
Overview
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Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Recent Developments
Impact of COVID-19
Our Revenue Model
MarTech
MarTech, the intersection of marketing and technology leverages data andanalytics to expand our points of distribution and advertising revenue.
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by limiting the number of ads delivered during any given period. Our Loop Playeris designed to allow us to multiply OOH revenue in certain locations, asoutlined below:
The Loop Player is at the heart of our revenue model and its technology enablesus to communicate and interact with OOH locations, advertisers, and OOHcustomers:
OOH Locations. The Loop Player allows OOH customers to program their in-store
monitors and audio systems to schedule playlists depending on the time of day,
promote their products or services through digital signage and deliver
? company-wide messages to staff in back-office locations. Business owners can
filter content based on ratings or explicit language and can control the genres
of videos in their programs. The Loop Player caches and encrypts our content,
thereby supplying uninterrupted play for up to 12 hours in the event of an
internet disruption.
Advertising and Content Partners. Our Loop Player works with our technology,
software and servers to determine the number of ad impressions available for
programmatic advertising, which can be filled in real-time, seconds before ads
are played. Our Loop Player delivers content and advertising to venues and our
technology allows us to record and report video content played (for reporting
to content providers) and advertising content played (for reporting to our
advertising demand partners and advertisers). In particular, our technology
allows us to track when, where and how long content is played, and measure
? approximately how many consumers were in position to view the content or
advertisement. The Loop Player's Wi-Fi and Bluetooth capabilities allow us to
determine the number of potential viewers at a given location, which can
provide us with a revenue multiplier, as we are able to increase advertising
revenue at high-volume locations. This "multiplier effect" is possible due to
the Loop Player's ability to detect, using Bluetooth and Wi-Fi technology, the
number of consumer mobile devices within reach of a Loop Player in an OOH
location which provides advertisers with a proxy for the number of potential
viewers of a particular ad at any given time.
OOH Customers. We are seeking to further develop the interactivity between the
? Loop Player and the customers in OOH venues. This may take different forms,
such as offering a simple thumbs up or thumbs down function, displaying the
number of customer votes for a given piece of content, and downloading of
customers of our OOH customers and venue operators through our Loop Player. Our
Loop Player allows us to collect specific information and data on content
? played, views, location, and location type, enabling us to effectively measure
demand. These capabilities allow us to make informed decisions around which
Components of results of operations
Revenue
Cost of Revenue
Cost of revenue consists of expenses related to licensing, content delivery andcustomer support.
Operating Expenses
Sales, General and Administrative Expenses
Impairment of goodwill and intangibles
Goodwill impairment occurs when the carrying amount of a goodwill asset isgreater than its fair value. The amount of the impairment is the differencebetween the two figures. Goodwill is recorded as part of a corporateacquisition, representing the excess of the price paid over the value of theunderlying assets and liabilities of the acquiree.
Other Income/Expense
Interest expense
Interest expense consists of interest expense on our outstanding indebtednessand amortization of debt issuance costs.
Income taxes
Consolidated Results of Operations
The following tables set forth our results of operations for the periodspresented. The period-to-period comparison of financial results is notnecessarily indicative of future results:
(8,319,548) 7,759,804 (93) %
Cost of revenue
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months ended September 30, 2021, not in 2020. In addition, our networkinfrastructure and server hosting costs increased due to an increased use of allproducts.
Other income and (expenses)
We define EBITDA as earnings before interest expense (income), income tax(expense)/benefit, depreciation and amortization.
? EBITDA does not reflect the amounts we paid in interest expense on our
outstanding debt;
? EBITDA does not reflect the amounts we received in interest income by our
investors;
? EBITDA does not reflect the amounts we received in interest income on our
investments;
? EBITDA does not reflect the amounts we paid in taxes or other components of our
tax provision;
? EBITDA does not include depreciation expense from fixed assets; and
? EBITDA does not include amortization expense.
Because of these limitations, you should consider EBITDA alongside otherfinancial performance measures including net income (loss) and our financialresults presented in accordance with U.S. GAAP.
The following table provides a reconciliation of net loss to EBITDA for each ofthe periods indicated:
739,698
(3,556)
Amortization and Depreciation expense* $ 2,046,532 $
728,990
*Includes amortization of content license assets.
Adjusted EBITDA
Adjusted EBITDA is not measured in accordance with, or an alternative to,measures prepared in accordance with U.S. GAAP. In addition, this non-GAAPmeasure is not based on any comprehensive set of accounting rules or principles.As a non-GAAP measure, Adjusted EBITDA has limitations in that it does notreflect all of the amounts associated with our results of operations asdetermined in accordance with U.S. GAAP. In particular:
? Adjusted EBITDA does not reflect the amounts we paid in interest expense on our
outstanding debt;
? Adjusted EBITDA does not reflect the amounts we paid in taxes or other
components of our tax provision;
? Adjusted EBITDA does not include depreciation expense from fixed assets;
? Adjusted EBITDA does not include amortization expense;
? Adjusted EBITDA does not include the impact of stock-based compensation; and
? Adjusted EBITDA does not include the impact of non-recurring income and
expenses.
Because of these limitations, you should consider Adjusted EBITDA alongsideother financial performance measures including net income (loss) and ourfinancial results presented in accordance with U.S. GAAP.
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The following table provides a reconciliation of net loss to Adjusted EBITDA foreach of the periods indicated:
1,816,034
*Includes amortization content license assets.
Liquidity and Capital Resources
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LOOP MEDIA, INC. - 10-KT - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. - marketscreener.com