Seguridad Mania.com - España y América Latina

SAN FRANCISCO, CALIFORNIA -- (Marketwire) -- 11/14/12 -- Bitzio, Inc. (OTCQB: BTZO), a leading mobile media and app company, reported results for the third quarter ended September 30, 2012.

Q3 2012 Operational Highlights

--  Partnered with ROAR, a leading talent management company, to develop
    mobile apps for the world's most popular entertainment properties and
    talent, including actors, celebrities, musicians and athletes.
--  Secured a licensing partnership with The NFL Players, a subsidiary of
    the National Football League Players Association (NFLPA), to jointly
    develop and market a football trivia app for the more than 180 million
    fans of the NFL.
--  Bitzio's in-house software and animation studio advanced the development
    of "Pigskins Football Player Trivia Game," the first app to be produced
    from the new NFL Players partnership. The highly engaging app features
    the NFL's Top 50 players, along with in-app purchase options and social
    media features that enhance and expand game-play. The app is now set for
    release in December 2012, downloadable for free from Apple's App Store
    and the Android Marketplace.
--  Strengthened the executive management team with the addition of Peter
    Henricsson as the company's new president and CEO. Prior to Bitzio,
    Henricsson was the founder, chairman and CEO of CellPoint, a European
    leader in location-based technologies for mobile operators. Under
    Henricsson's leadership, CellPoint listed on the NASDAQ Stock Market and
    achieved a market cap of $1 billion.
--  Completed $598,000 convertible note financing to support the company's
    growth initiatives. An entity controlled by Henricsson contributed
    $300,000 to the raise.
--  Divested the company's non-core Info-Products division, including the
    app developer training series, and thereby eliminating $667,000 in
    liabilities. The divestiture has allowed Bitzio to focus on developing
    and monetizing mobile apps for the sports and entertainment marketplace.

Management Commentary

"During the third quarter of 2012, we greatly improved our operational platform and set course on our new business model designed to tap the tremendous opportunities for mobile apps in the sports and entertainment markets," said Peter Henricsson, president and CEO of Bitzio. "In fact, we achieved several milestones in the quarter, including divesting non-core assets, strengthening our balance sheet and executive team, and forming major strategic partnerships.

"Our new license agreement with The NFL Players demonstrated our ability to secure the media rights of large, existing fan bases, as well as establish a co-marketing and revenue-sharing partnership that requires no up-front fees. We have been working closely with The NFL Players to develop the first app, which is now set to launch next month. Given their marketing support, we are confident the trivia app will be well received and widely downloaded by the millions of NFL fans across the country.

"Our partnership with The NFL Players also serves an ideal showcase of Bitzio's capabilities, and represents a springboard toward greater opportunities across a number of verticals, including other sports communities, entertainment properties and major consumer brands. We are now well positioned to capitalize on the tremendous opportunities in delivering apps to the fan-based communities of some of world's largest sports clubs and entertainment brands. We plan to leverage our deep industry relationships and marketing partnerships to secure new licensing agreements during the coming months, and roll out a number of new and highly-engaging mobile apps."

Q3 2012 Financial Summary

During the third quarter, Bitzio divested non-core assets and operations to focus on developing and monetizing fan-based apps in the sports and entertainment markets. The company generated nominal revenues from it legacy software and mobile applications in the third quarter, totaling $154,000 compared to marginal revenues in the same year-ago quarter.

Operating expenses in the third quarter of 2012 were $1.4 million, a significant improvement from $8.1 million in the same year-ago quarter. The year-over-year improvement was primarily due to a significant decrease in stock-based compensation, as well as a $2.3 million goodwill impairment charge recognized in Q3 2011.

Net loss from continuing operations in the third quarter of 2012 totaled $1.1 million or $(0.02) per share, as compared to a net loss of $8.1 million or $(0.22) per share in the same year-ago quarter.

Q3 2012 net loss included $1.6 million in non-cash items, comprised of $61,000 of amortization and depreciation, $558,000 related to losses on assets, $185,000 of derivative liability gain, $56,000 of amortization of debt discounts and $1.1 million of stock-based compensation. This compares to $2,000 of non-cash items in Q3 2011, which were comprised of $300 of amortization and depreciation and $1,500 of stock-based compensation.

Excluding these non-cash items, net loss before discontinued operations in Q3 2012 was $102,000 compared to $257,000 in the same year-ago period.

About Bitzio, Inc.

Founded in 2011, Bitzio is a leading mobile media and app development company focused on connecting fans of large entertainment and sports properties with the players, celebrities and teams they love. Powering these apps is the Bitzio Engine, which captures valuable user data and drives increased user monetization. What makes Bitzio really different is its approach to capturing users. Most app companies build first and hope the audience will come. Bitzio licenses media rights of sports and entertainment properties with millions of existing fans. Bitzio uses these rights to create mobile apps and web experiences for these existing fan bases. For more information, visit www.bitzio.com. To learn more about Bitzio, connect on Twitter (http://twitter.com/bitzio) and Facebook (https://www.facebook.com/bitzioinc).

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal," "commitment," "guidance," "expects," "would," "will," "continuing," "drive," "believes," "indicate," "look forward," "grow," "outlook," "forecasts," and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

                               BITZIO, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                            September 30,     December 31,
                                                    2012             2011
                                          --------------   --------------
                                             (Unaudited)
                                 ASSETS
                                 ------

CURRENT ASSETS
 Cash                                     $      199,759   $      181,725
 Accounts receivable, net                        138,397           92,232
 Prepaid expenses and other current assets       138,677          337,508
 Due from related parties                              -          228,980
 Prepaid acquisition costs                             -          713,150
                                          --------------   --------------

  Total current assets                           476,833        1,553,595
                                          --------------   --------------

OTHER ASSETS
 Property and equipment, net                      63,693                -
 Intangible assets, net                          614,050          582,424
 Goodwill                                        774,047          627,134
                                          --------------   --------------

  Total other assets                           1,451,790        1,209,558
                                          --------------   --------------

  TOTAL ASSETS                            $    1,928,623   $    2,763,153
                                          --------------   --------------
                                          --------------   --------------

                   LIABILITIES AND STOCKHOLDERS' EQUITY
                   ------------------------------------

CURRENT LIABILITIES
 Accounts payable and accrued expenses    $      432,953   $      253,976
 Deferred revenue                                      -           77,433
 Notes payable, related parties                  351,870          426,870
 Convertible notes, net of discount              283,642           70,745
 Derivative liability                            277,460                -
                                          --------------   --------------

  TOTAL CURRENT LIABILITIES                    1,345,925          829,024
                                          --------------   --------------

STOCKHOLDERS' EQUITY
 Preferred stock, $0.001 par value;
  25,000,000 shares
  authorized; 5,343,120 and 0 shares
   issued and outstanding, respectively            5,343                -
 Common stock, $0.001 par value;
  250,000,000 shares
  authorized; 66,538,869 and 50,018,625
   shares issued and outstanding,
   respectively                                   66,539           50,019
 Stock subscriptions payable                           -          186,000
 Additional paid-in capital                   19,143,494       11,800,050
 Accumulated other comprehensive income           (1,998)               -
 Accumulated deficit                         (18,630,680)     (10,101,940)
                                          --------------   --------------

  Total stockholders' equity                     582,698        1,934,129
                                          --------------   --------------

  TOTAL LIABILITIES AND STOCKHOLDERS'
   EQUITY                                 $    1,928,623   $    2,763,153
                                          --------------   --------------
                                          --------------   --------------

                               BITZIO, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (Unaudited)

                             For the                     For the
                        Three Months Ended          Nine Months Ended
                          September 30,               September 30,
                   --------------------------  --------------------------
                           2012          2011          2012          2011
                   ------------  ------------  ------------  ------------

REVENUES           $    154,384  $      3,104  $    519,591  $      3,104

OPERATING EXPENSES

  Professional fees   1,296,105        43,294     3,329,505        62,422
  Executive
   compensation               -     1,141,576       127,500     1,141,576
  General and
   administrative       120,593     4,568,268       418,151     4,591,474
  Impairment of
   goodwill                   -     2,350,800     3,981,508     2,350,800
                   ------------  ------------  ------------  ------------
   Total Operating
    Expenses          1,416,698     8,103,938     7,856,664     8,146,272
                   ------------  ------------  ------------  ------------

LOSS FROM
 OPERATIONS          (1,262,314)   (8,100,834)   (7,337,073)   (8,143,168)
                   ------------  ------------  ------------  ------------

OTHER EXPENSES
  Interest expense      (69,408)         (500)     (227,262)         (746)
  Gain on
   derivative
   liability            185,118             -       185,118             -
                   ------------  ------------  ------------  ------------

   Total Other
    Expenses            115,710          (500)      (42,144)         (746)
                   ------------  ------------  ------------  ------------

LOSS BEFORE INCOME
 TAXES               (1,146,604)   (8,101,334)   (7,379,217)   (8,143,914)
PROVISION FOR
 INCOME TAXES                 -             -             -             -
                   ------------  ------------  ------------  ------------

NET LOSS FROM
 CONTINUING
 OPERATIONS        $ (1,146,604) $ (8,101,334) $ (7,379,217) $ (8,143,914)

  Loss from
   discontinued
   operations          (150,681)            -      (591,236)            -
  Loss on disposal
   of subsidiary       (558,287)            -      (558,287)            -
                   ------------  ------------  ------------  ------------

  Loss from
   Discontinued
   Operations, net
   of income taxes     (708,968)            -    (1,149,523)            -
                   ------------  ------------  ------------  ------------

NET LOSS           $ (1,855,572) $ (8,101,334) $ (8,528,740) $ (8,143,914)
                   ------------  ------------  ------------  ------------
                   ------------  ------------  ------------  ------------

BASIC AND DILUTED
 LOSS PER SHARE
  FROM CONTINUING
   OPERATIONS      $      (0.02) $      (0.22) $      (0.13) $      (0.24)
                   ------------  ------------  ------------  ------------
                   ------------  ------------  ------------  ------------

BASIC AND DILUTED
 LOSS PER SHARE
  FROM DISCONTINUED
   OPERATIONS      $      (0.01) $          -  $      (0.02) $          -
                   ------------  ------------  ------------  ------------
                   ------------  ------------  ------------  ------------

BASIC AND DILUTED
 WEIGHTED AVERAGE
 NUMBER OF SHARES
  OUTSTANDING        62,441,151    37,557,473    57,152,841    34,566,071
                   ------------  ------------  ------------  ------------
                   ------------  ------------  ------------  ------------