Webring inc – Zurc 2 http://zurc2.com/ Tue, 10 May 2022 21:34:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://zurc2.com/wp-content/uploads/2021/10/icon-9-120x120.png Webring inc – Zurc 2 http://zurc2.com/ 32 32 LIVEPERSON INC Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://zurc2.com/liveperson-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Tue, 10 May 2022 21:12:07 +0000 https://zurc2.com/liveperson-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ General Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which are prepared in conformity with accounting principles generally accepted in the United States of America. As such, we are required to make certain estimates, judgments and assumptions that management believes are reasonable based […]]]>

General


Our discussion and analysis of our financial condition and results of operations
is based upon our condensed consolidated financial statements, which are
prepared in conformity with accounting principles generally accepted in the
United States of America. As such, we are required to make certain estimates,
judgments and assumptions that management believes are reasonable based upon the
information available. We base these estimates on our historical experience,
future expectations and various other assumptions that we believe to be
reasonable under the circumstances, the results of which form the basis for our
judgments that may not be readily apparent from other sources. These estimates
and assumptions affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the dates of the condensed
consolidated financial statements and the reported amounts of revenue and
expenses during the reporting periods. These estimates and assumptions relate to
estimates of the carrying amount of goodwill, intangibles, depreciation, stock
based-compensation, valuation allowances for deferred income taxes, accounts
receivable, the expected term of a customer relationship, accruals and other
factors. We evaluate these estimates on an ongoing basis. Actual results could
differ from those estimates under different assumptions or conditions, and any
differences could be material. In addition, our actual results could differ from
our estimates and assumptions based upon impacts on our business and general
economic conditions due to the current COVID-19 pandemic.

                                    Overview

LivePerson is a leading Conversational AI company creating digital experiences
that are Curiously Human. Conversational AI allows humans and machines to
interact using natural language, including speech or text. During the past
decade, consumers have made mobile devices the center of their digital lives,
and they have made mobile messaging the center of communication with friends,
family and peers. This trend has been significantly accelerated by the COVID-19
pandemic and we believe can now be viewed as a permanent, structural shift in
consumer behavior. Our technology enables consumers to connect with businesses
through these same preferred conversational interfaces, including Facebook
Messenger, SMS, WhatsApp, Apple Business Chat, Google Rich Business Messenger
and Alexa. These messaging conversations harness human agents, bots and AI to
power convenient, personalized and content-rich journeys across the entire
consumer lifecycle, from discovery and research, to sales, service and support,
and increasingly marketing, social, and brick and mortar engagements. For
example, consumers can look up product info like ratings, images and pricing,
search for stores, see product inventory, schedule appointments, apply for
credit, approve repairs, and make purchases or payments - all without ever
leaving the messaging channel. These AI and human-assisted conversational
experiences constitute the Conversational Space, within which LivePerson has
strategically developed one of the industry's largest ecosystems of messaging
endpoints and use cases.

The Conversational Cloud, our enterprise-class cloud-based platform, enables
businesses to become conversational by securely deploying AI-powered messaging
at scale for brands with tens of millions of customers and many thousands of
agents. The Conversational Cloud powers conversations across each of a brand's
primary digital channels, including mobile apps, mobile and desktop web
browsers, SMS, social media and third-party consumer messaging platforms. Brands
can also use the Conversational Cloud to message consumers when they dial a
1-800 number instead of forcing them to navigate IVRs and wait on hold.
Similarly, the Conversational Cloud can ingest traditional emails and convert
them into messaging conversations, or embed messaging conversations directly
into web advertisements, rather than redirect consumers to static website
landing pages. Agents can manage all conversations with consumers through a
single console interface, regardless of where the conversations originated.

LivePerson's robust, cloud-based suite of rich messaging, real-time chat, AI and
automation offerings features consumer and agent facing bots, intelligent
routing and capacity mapping, real-time intent detection and analysis, queue
prioritization, customer sentiment, analytics and reporting, content delivery,
PCI compliance, co-browsing and a sophisticated proactive targeting engine. An
extensible API stack facilitates a lower cost of ownership by facilitating
robust integration into back-end systems, as well as enabling developers to
build their own programs and services on top of the platform. More than 40 APIs
and software development kits are available on the Conversational Cloud.

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For your reference:

• Conversational AI: Conversational AI allows humans and machines to interact using natural language, including speech or text.


•Conversational Space: In the Conversational Space, consumers message with
brands on their own schedule, using natural language, to resolve their intents -
all on their preferred messaging service. The core capabilities of the
Conversational Space are voice and text-based interfaces, powered by AI and
humans working together. Conversational Space is the simplest, most intuitive
interface of all.

•Conversational Cloud: LivePerson's enterprise-class, AI-powered Conversational
Cloud platform empowers consumers to message their favorite brands, just as they
do with friends and family.

LivePerson's Conversational AI offerings put the power of bot development,
training, management and analysis into the hands of the contact center and its
agents, the teams most familiar with how to structure sales and service
conversations to drive successful outcomes. The platform enables what we call
"the tango" of humans, AI and bots, whereby human agents act as bot managers,
overseeing AI-powered conversations and seamlessly stepping into the flow when a
personal touch is needed. Agents become ultra-efficient, leveraging the AI
engine to serve up relevant content, define next-best actions and take over
repetitive transactional work, so that the agent can focus on relationship
building. By seamlessly integrating messaging with our proprietary
Conversational AI, as well as third-party bots, the Conversational Cloud offers
brands a comprehensive approach to scaling automations across their millions of
customer conversations.

Complementing our proprietary messaging and Conversational AI offerings are
teams of technical, solutions and consulting professionals that have developed
deep domain expertise in the implementation and optimization of conversational
services across industries and messaging endpoints. We are a leading authority
in the Conversational Space. LivePerson's products, coupled with our domain
knowledge, industry expertise and professional services, have been proven to
maximize the effectiveness of the Conversational Space and deliver measurable
return on investment for our customers. Certain of our customers have achieved
the following advantages from our offerings:

•the ability for each agent to manage as many as 40 messaging conversations at a
time, as compared to one at a time for a voice agent and two to four at a time
for a good chat agent. Adding AI and bots provides even greater scale to the
number of conversations managed;

• Labor efficiencies at least twice that of voice agents, reducing labor costs by at least 50%;

•Improvement of the overall customer experience, thus increasing the customer satisfaction score by up to 20 percentage points, and improving retention and loyalty;

• More practical, personalized and content-rich conversations that increase sales conversion by up to 20%, increase average order value and reduce abandonment;

•More satisfied contact center agents, reducing agent churn by up to 50%.

•Valued connection with consumers via mobile devices, either through native apps, websites, SMS or third-party messaging platforms;

• leveraged spending that drives visitor traffic by increasing visitor conversions;

•Refine and improve performance by understanding which initiatives provide the highest rate of return; and

•increased lead generation by providing a single platform that engages consumers through advertisements and listings on branded and third-party websites.


As a "cloud computing" or software-as-a service ("SaaS") provider, LivePerson
provides solutions on a hosted basis. This model offers significant benefits
over premise-based software, including lower up-front costs, faster
implementation, lower total cost of ownership, scalability, cost predictability,
and simplified upgrades. Organizations that adopt a fully-hosted, multi-tenant
architecture that is maintained by LivePerson eliminate the majority of the
time, server infrastructure costs, and information technology ("IT") resources
required to implement, maintain, and support traditional on-premise software.

To further enhance our platform, in September 2020 we signed a partnership with
a digital services and consulting company to transform our technology
infrastructure on the public cloud, to build integrated solutions and a global
practice around our Conversational Cloud to sell into this company's channels
and global enterprise customer base, and to redefine how the world's top brands
communicate.
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More than 18,000 businesses, including HSBC, Orange, and GM Financial use our
conversational solutions to orchestrate humans and AI, at scale, and create a
convenient, deeply personal relationship with their customers.

LivePerson's consumer services offering is an online marketplace that connects
Experts who provide information and knowledge for a fee via mobile and online
messaging with Users. Users seek assistance and advice in various categories
including personal counseling and coaching, computers and programming, education
and tutoring, spirituality and religion, and other topics.

Key elements of LivePerson’s business solutions strategy include:


Build awareness and drive adoption of the Conversational Space. LivePerson
brought our first customer live on messaging in June 2016. Since that time, we
have been focused on building awareness for conversational experiences and
driving adoption. We have educated businesses on the financial and operational
transformation that occurs when a contact center shifts to an asynchronous
messaging environment, where the consumer controls the pace of the conversation,
which can last minutes, hours or days, from a synchronous call or chat center,
where conversations occur in real-time and have a distinct start and end.

A key component of our industry awareness marketing strategy has been to hold
multiple global customer summits each year (events in 2020 and 2021 were held
virtually in light of the COVID-19 pandemic) that target executives from
enterprise customers and prospects, and feature a key theme within the
Conversational Space, such as Apple Business Chat, Google Rich Business
Messenger, IVR deflection or AI. LivePerson customers are the center point of
these summits, presenting why they chose LivePerson for conversational
experiences, how they achieved success, and what type of return on investment
they have realized. Each attendee then receives a blueprint for how they can
pursue similar outcomes. We have found this strategy to drive strong results for
LivePerson, as we have seen a greater than 40% conversion rate on opportunities
that were created or advanced as part of the customer summits. By year-end 2021,
nearly 75% of messaging conversations had automation attached. We will continue
to focus on building awareness for the Conversational Space and driving adoption
of messaging and AI across our customer base.

Increase messaging volumes by developing a broad ecosystem, expanding customer
use cases, and focusing on AI and automation. Our strategy is to drive higher
messaging volumes by going both wide across messaging endpoints, deep across
consumer use cases, and focusing on AI and automation as the means to deliver
powerful scale. By year-end 2021, nearly 75% of messaging conversations had
automation attached. We will continue to focus on building awareness for the
Conversational Space and driving adoption of messaging and AI across our
customer base. LivePerson offers a platform usage pricing model, where customers
are offered access to our entire suite of messaging technologies across their
entire agent pool for a pre-negotiated cost per interaction. We believe that
over time this model will drive higher revenue for LivePerson by reducing
barriers to adoption of new messaging endpoints and use cases.

In order to drive broad messaging adoption, it is imperative that the
Conversational Cloud integrates to all of the messaging apps that consumers
prefer to use for communication and addresses all key use cases. For example, if
a consumer is an avid WhatsApp user, and a brand only offers SMS as a messaging
option, that consumer may be reluctant to try messaging the brand. Therefore, a
key strategy of ours has been to build one of the industry's broadest ecosystems
of messaging endpoints and use cases. In June 2016, we launched with In-App
messaging. In 2017, we introduced Facebook Messenger, SMS, Web messaging and IVR
deflection integrations. In 2018, we added Apple Business Chat, Google Rich
Business Messenger, Line, WhatsApp, Alexa, Google Home, Google Ad Lingo and
Twitter. In 2019, we added email, allowing brands to manage emails through the
same console they use for messaging, and to convert legacy emails into messaging
conversations. We also added social monitoring and conversational tools for
Twitter and Facebook, and introduced proactive messaging, allowing brands to
transform traditional one-way notifications such as flight cancellations or
phone plan overage alerts into two-way conversations. Finally, we connected to
Facebook and WhatsApp digital advertisements, enabling consumers to initiate
messaging conversations for marketing and customer care directly within the
advertisement. In 2020, we added Instagram and Google's Business Messages,
allowing brands to bring customer-initiated conversations into the
Conversational Cloud directly from Instagram, Google Search, and Google Maps.

Each channel and use case added opens the door to new consumers, providing
brands a greater opportunity to shift share away from their legacy contact
center channels into messaging. For example, in 2019, leading airlines launched
on WhatsApp and Apple Business Chat with the ability to make secure payments; a
baseball stadium launched an automated conversational concierge providing
answers to a wide range of questions from restroom locations to player stats;
and a multinational
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telecommunications company used proactive two-way messaging for outbound
campaigns. In 2020, one of the largest Telcos in Australia fully virtualized
their contact centers, a leading U.S. quick-serve restaurant launched on
Facebook Messenger to help customers order meals, one of the biggest banks in
the world launched an Apple Business Chat channel to provide a secure way to
perform day-to-day banking, and one of the world's largest jewelry retailers
used the Conversational Cloud and QR codes to sell millions of dollars of
product. In 2021, one of the ten largest healthcare companies in the world
launched web messaging to enable their customers to check the status of their
orders and request prescription refills with ease, and a multi-billion-dollar
entertainment and media company enabled their consumers to plan trips, buy
tickets or change reservations with in-app messaging.

LivePerson makes the management of all these disparate channels seamless to the
brand. AI-based intelligent routing, queuing and prioritization software
orchestrates these conversations at scale, regardless of which messaging
endpoint they originated from, so that human and bot agents can engage with all
customers through just one console.

We believe LivePerson is leading the structural shift to Conversational AI. In
the wake of the COVID-19 pandemic, leading brands are turning to LivePerson's
AI-powered messaging to overcome a capacity gap created by voice call agent
work-from-home measures and increased demand for digital engagement as consumers
practice social distancing. LivePerson is powering Conversational AI, automation
and messaging strategies across a growing number of use cases from care and
sales, to marketing, social, conversational advertising and brick and mortar.
Our Conversational AI leadership and the increase in adoption have influenced
LivePerson's enterprise and mid-market revenue retention rate, (the
trailing-twelve-month change in total revenue from existing customers after
upsells, downsells and attrition) which exceeded the high end of our target
range of 105% to 115% for 2021. The benefit can also be seen in LivePerson's
average revenue per user ("ARPU") for our enterprise and mid-market customers,
which increased approximately 32% for the trailing twelve months ended March 31,
2022 to $645,000 from approximately $490,000 for the trailing twelve months
ended March 31, 2021. We believe these ARPU trends are a clear indication of how
LivePerson's strategy to drive messaging adoption has successfully influenced
our revenue growth by taking share from legacy communication channels.

Attract the industry's best AI, machine learning and conversational talent. We
believe that AI and machine learning are critical to successfully scaling in the
Conversational Space, and that in order to develop the industry's leading
technology, we need to attract the industry's best talent. We have hired some of
the industry's brightest data scientists, machine learning engineers and
automation engineers, many from firms such as Nike, Amazon.com, Microsoft and
Target, who are working exclusively on applying AI to the Conversational Space.
LivePerson also expanded its development talent base in Germany, and added key
development talent through the acquisitions of BotCentral in Mountain View,
California; Callinize, Inc. (dba Tenfold) ("Tenfold") in Austin, Texas; e-bot7
GmbH ("e-bot7") in Munich, Germany; VoiceBase, Inc. ("VoiceBase") in San
Francisco, California; and WildHealth, Inc. in Lexington, Kentucky.

Bring to market best-in-class AI and machine learning technologies designed for
the Conversational Space. We believe that in the last decade many vendors
introduced AI and bot offerings that created frustrating experiences for
consumers and businesses alike, which in turn has eroded trust in automation.
Many of these solutions have proven difficult to build and scale, and have been
limited by stand-alone implementations that lacked the measurement, reporting
and human oversight of conversational platforms such as the Conversational
Cloud. In December 2018, LivePerson announced its patent-protected AI engine
that is designed to overcome these shortcomings and help brands rapidly bring to
market conversational AI that can scale to millions of interactions, while
increasing customer satisfaction and conversion rates.

Unlike alternative solutions designed solely for IT departments, LivePerson's
Conversational AI was built to be used by developers and contact center agents.
By putting the power of conversational design and bot management in the hands of
contact center agents, LivePerson's Conversational AI gives brands the ability
to leverage the employees closest to the customer, those who are most versed in
the voice of the brand, and with the most expertise in how to craft successful
outcomes for customer service and sales journeys.

Some of the key innovations behind LivePerson’s conversational AI include:


•a holistic approach to scaling AI by combining consumer facing bots, agent
facing bots, intelligent routing and real-time intent understanding, with an
analytics dashboard that helps users focus on the intents that are impacting
their business and prioritize which intents to automate next;

• Dialog-based bot-building software rather than workflow or code, so non-technical workers like contact center agents can design automations.

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•leveraging a data moat from hundreds of millions of conversations to feed the
machine learning that rapidly and accurately detects consumer sentiment and
intents in real-time. Customers of LivePerson can use intent understanding for
advanced routing, next-best actions, and to fully contain conversations with
automation;

•the establishing of contact center agents as bot managers, ensuring that every
conversation is safeguarded by a human and that agents are continuously training
the AI to be smarter and drive more successful outcomes;

• Powerful Assist technology that multiplies agent efficiency by analyzing intent in real time, then suggesting the best next actions, pre-defined content and bots that can support transactional work;

• Pre-built templates for target verticals that provide out-of-the-box support for core intents and core integrations;

•the ability to start conversations with existing transcripts, reducing design effort and speeding time to market;

• Integration of third-party AI Natural Language Understanding (“NLU”) so that customers are not locked into a single vendor; and


•AI analytics and reporting tailored to the Conversational Space, providing
brands with immediate, actionable insights about their businesses and contact
center operations.

Our strategy is to continue to enhance the Conversational AI engine and related
products, by leveraging our global research and development ("R&D") footprint
and substantial library of mobile and online conversational data, with the aim
of increasing agent efficiency, decreasing customer care costs, improving the
customer experience and increasing customer lifetime value.

Sustain our leadership position by aligning brands to a vision that transforms
how they communicate with consumers and delivers a superior return on brands'
investment. Over the past four years we have made good progress in developing
our conversational AI platform and within the next 12 months, we expect to have
a solution in place for our automations to self-heal, which is the ultimate goal
of any AI platform. Our acquisitions of VoiceBase and Tenfold provide us with a
mechanism for data capture in the voice channel. This additional data and the
associated analytics and system integration give us an even greater ability to
scale the usage of our platforms, by building on our strength in messaging.
Brands must adapt their contact centers to an asynchronous messaging environment
and leverage a combination of human agents, bots, and AI to achieve scale and
efficiencies. When done correctly, the entire consumer lifecycle with a brand
will be maintained within the Conversational Space, and traffic will steadily
shift away from lower returning traditional voice calls, websites, emails, and
apps to higher returning messaging endpoints.

We believe LivePerson is uniquely positioned to drive this transformation with our technology and expertise:


•The Conversational Cloud, LivePerson's enterprise-class, automation-first,
cloud-based platform, was designed for AI-assisted and human-powered messaging
in mobile and online channels. The platform offers best-in-class security and
scalability, offers the broadest ecosystem of messaging endpoints, is designed
for ease of use, and features an AI engine custom built for the Conversational
Space, intent recognition, robust real-time reporting, role-based real-time
analytics, predictive intelligence, and innovations in customer satisfaction and
connection measurement. Additionally, the Conversational Cloud is an open
platform with pre-built, enterprise-grade integrations into back-end systems as
well as the ability to work across NLU providers.

• The company believes it has a data moat built on hundreds of millions of conversations across industries, geographies, and use cases that feed the machine learning engines that power understanding of the ‘intention.

• The platform has expanded to power conversations across a wide range of channels and use cases, from traditional sales and customer service to marketing, social media, email, advertising and brick and mortar.


•LivePerson has deep domain expertise across verticals and messaging endpoints,
a global footprint, referenceable enterprise brands and a team of technical,
solutions and consulting professionals to assist customers along their
transformational journeys. We are positioned as an authority in the
Conversational Space. We have developed a Transformation Model that is
introduced to existing and prospective customers to help guide them on their
journeys from legacy and oftentimes inefficient legacy voice, email and chat
solutions to modern conversational ones powered by messaging and AI.

•The Company has developed Gainshare - a Transformation Model that is introduced
to existing and prospective customers to help guide them on their journeys from
legacy and oftentimes inefficient legacy voice, email, and
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chat solutions to modern conversational ones powered by messaging and AI.
Gainshare is a fully managed solution where LivePerson not only provides the
messaging and AI automation technology, but also the labor, automation, and
end-to-end program management, leveraging the Company's expertise with
Conversational AI and messaging operations. Gainshare is an option for brands
that want to accelerate a transformation to Conversational AI, or that want a
worry-free solution where LivePerson manages the entire operation, from staffing
to automation building and optimization, to conversation design and consumer
experience. Gainshare pricing is bespoke, and is typically structured around a
brand's desired goals, whether driving incremental revenue or reducing
operational costs.

We believe that LivePerson's differentiated approach to the Conversational
Space, combined with our unique technology and expertise has established us as a
market leader, with an ability to deliver superior returns on investment.
LivePerson customers manage as many as 40 messaging conversations at a time, as
compared to one at a time for a voice agent and two to four at a time for a good
chat agent. Adding AI and bots provides even greater scale to the number of
conversations managed. Our customers often see labor efficiency gains of at
least two times that of voice agents, effectively cutting labor costs by at
least 50%. Furthermore, our ability to deliver more convenient, personalized and
content-rich conversations often drives increases in customer satisfaction of up
to 20 percentage points and increases in sales conversions of up to 20%, while
enhancing average order value, customer retention and loyalty.

Strengthen our position in both existing and new industries. We plan to continue
to develop our market position by increasing our customer base, and expanding
within our installed base. We plan to continue to focus primarily on key target
markets: consumer/retail, telecommunications, financial services,
travel/hospitality, technology and automotive within both our enterprise and
mid-market sectors, as well as the small business sector ("SMB"). In 2021, we
continued to grow in verticals such as healthcare and financial services. We
plan to continue experimenting with new conversational businesses, including
some that are in regulated industries, like online banking and healthcare. We
are increasingly structuring our field organization to emphasize our domain
expertise and strengthen customer relationships across target industries.

Continue to build our international presence. We are focused on continuing to
build our international presence through expansion of our international revenue
contribution, which accounted for 35% of total revenue in 2021. We are
generating positive results from our recent investments in the Asia Pacific,
Europe, and Latin America regions. Expanding go-to-market capacity in
international theaters is one of our key strategic focuses and also part of our
motivation for our recent acquisition of e-bot7.

Leverage our open architecture to support partners and developers. In addition
to developing our own applications, we continue to cultivate a partner
eco-system capable of offering additional applications and services to our
customers. We integrate into third-party messaging endpoints including SMS,
Facebook Messenger, Apple Business Chat, Google Rich Business Messenger, Line,
WhatsApp, Alexa, Google Home, WeChat, Google Ad Lingo, Google Search, Google
Maps, Instagram and Twitter, multiple IVR vendors, and dozens of branded apps.
The Conversational Cloud integrates our proprietary messaging and Conversational
AI with third-party bot offerings, empowering our customers to manage a mix of
different bots, human agents and technologies from one control panel, thereby
optimizing contact center efficiency. LivePerson's proprietary and third-party
AI/bots enable brands to partially or fully automate communications with their
customers.

In addition, we have opened up access to our platform and our products with more
than 40 APIs and software development kits that allow customers and third
parties to develop on top of our platform. Customers and partners can utilize
these APIs to build our capabilities into their own applications and to enhance
our applications with their services. In 2019, we launched LivePerson Functions,
a serverless function as a service ("FaaS") integration which enables brands to
develop custom behaviors within LivePerson's conversational platform to easily
and rapidly tailor conversation flows to their specific needs.

Expand sales partnerships to broaden our presence and accelerate sales cycles.
We are focused on broadening our market reach and accelerating sales cycles by
partnering with systems integrators, technology providers, business process
outsourcers, value added resellers and other sales partners. We formalized a
relationship with IBM Global Business Services in 2017 and Accenture in 2018. In
2019, we announced strategic partnerships with TTEC, a leading BPO focused on
customer experience, and DMI, a digital transformation company, to redefine the
customer experience with digital engagement, messaging, and AI-driven
automation. In 2020, a digital services and consulting company joined
LivePerson's network with a first-of-its-kind 360 degree partnership focusing
not only on capturing the global rising demand for conversational commerce and
building a personalized experience for customers, but also driving the
transformation for internal corporate messaging and the employee experience
through Conversational AI. In 2021, we announced strategic integration
partnerships with Google Cloud, Adobe and Medallia to help brands make contact
center agents more efficient and effective, and empower and enrich the
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customer and employee experience management through the power of AI. Our network has also expanded with the Tech Mahindra partnership to help brands deliver personalized conversational experiences to consumers at scale.


Maintain market leadership in technology and security expertise. As described
above, we are devoting significant resources to creating new products and
enabling technologies designed to accelerate innovation. We evaluate emerging
technologies and industry standards and continually update our technology in
order to retain our leadership position in each market we serve. We monitor
legal and technological developments in the area of information security and
confidentiality to ensure our policies and procedures meet or exceed the demands
of the world's largest and most demanding corporations. We believe that these
efforts will allow us to effectively anticipate changing customer and consumer
requirements in our rapidly evolving industry.

Evaluate strategic alliances and acquisitions when appropriate. In July 2021, we
acquired German conversational AI company e-bot7, which propels our self-service
capabilities and continued growth across Europe. In October 2021, we acquired
VoiceBase, a leader in real-time speech recognition and conversational
analytics; and Tenfold, an advanced customer engagement platform for integrating
communication systems with leading CRM and support services. In February 2022,
we acquired WildHealth, a precision medicine company. Once fully integrated, we
expect these acquisitions to allow LivePerson to deliver our AI and automation
capabilities, insights, and integration as a single integrated product offering
across all channels including voice and messaging.


                                  Key Metrics

Financial overview for the three months ended March 31, 2022 compared to the three months ended March 31, 2021:

• Total revenue increased by 21% to reach $130.2 million from $107.9 million.

• Revenue in our Business segment increased by 22% to reach $121.1 million from $98.9 million.

• Gross profit margin decreased from 69% to 62%.

• Costs and expenses increased by 61% to reach $195.3 million from $121.5 million.

• Net loss increased to $65.4 million from $21.2 million.


•Average annual revenue per enterprise and mid-market customer increased
approximately 32% to $645,000 for the trailing twelve months ended March 31,
2022, as compared to $490,000 for the trailing twelve months ended March 31,
2021.

•Our target for enterprise and mid-market revenue retention in 2022 matches
2021, and is a range of 105% to 115%. Revenue retention rate for enterprise and
mid-market customers on the Conversational Cloud was within our target range of
105% to 115% in the first quarter of 2022 and exceeded the high end of our
target range of 105% to 115% in the first quarter of 2021. Revenue retention
rate measures the percentage of revenue retained at quarter end, from full
service customers that were on the Conversational Cloud at the same period a
year ago.

              Adjusted EBITDA and Adjusted Operating (Loss) Income

To provide investors with additional information regarding our financial
results, we have disclosed adjusted earnings before interest, taxes,
depreciation, and amortization ("EBITDA") and adjusted operating income (loss),
which are non-GAAP financial measures. The tables below present a reconciliation
of adjusted EBITDA and adjusted operating income to net (loss) income, the most
directly comparable GAAP financial measures.

We have included adjusted EBITDA and adjusted operating income (loss) in this
Quarterly Report on Form 10-Q because these are key measures used by our
management and board of directors to understand and evaluate our core operating
performance and trends, to prepare and approve our annual budget and to develop
short and long-term operational plans. In particular, the exclusion of certain
expenses in calculating adjusted EBITDA and adjusted operating income (loss) can
provide a useful measure for period-to-period comparisons of our core business.
Additionally, adjusted EBITDA is a key financial measure used by the
compensation committee of our board of directors in connection with the payment
of bonuses to our executive officers. Accordingly, we believe that adjusted
EBITDA and adjusted operating income (loss) provide useful information to
investors and others in understanding and evaluating our operating results in
the same manner as our management and board of directors.
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Our use of adjusted EBITDA has limitations as an analytical tool, and you should
not consider it in isolation or as a substitute for analysis of our results as
reported under GAAP. Some of these limitations are:

•  although depreciation and amortization are non-cash charges, the assets being
depreciated and amortized may have to be replaced in the future, and adjusted
EBITDA does not reflect cash capital expenditure requirements for such
replacements or for new capital expenditure requirements;

• Adjusted EBITDA does not reflect variations or cash requirements for our working capital requirements;

•  adjusted EBITDA does not consider the impact of acquisition costs;

•  adjusted EBITDA does not consider the impact of restructuring costs;

•  adjusted EBITDA does not consider the impact of other costs;

• Adjusted EBITDA does not reflect tax payments which may represent a reduction in the cash available to us; and

• Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Due to these limitations, you should consider Adjusted EBITDA alongside other measures of financial performance, including various pretax GAAP losses and our other GAAP results. The following table provides a reconciliation of Adjusted EBITDA for each of the periods indicated:

                                                                        Three Months Ended March 31,
                                                                           2022                  2021
                                                                               (In thousands)
Reconciliation of Adjusted EBITDA
GAAP net loss                                                       $       (65,364)         $ (21,195)
Amortization of purchased intangibles and finance leases                      6,257              1,550
Stock-based compensation                                                     31,866             14,611
Contingent earn-out adjustments                                                   -                132
Restructuring costs (1)                                                         (23)             2,732
Depreciation                                                                  7,224              6,605
Other litigation and consulting costs (2)                                     1,751              1,347
Benefit from income taxes                                                      (193)              (851)
Acquisition costs                                                               419                  -
Interest expense, net                                                           490              9,129
Other income, net (3)                                                           (60)              (712)
Adjusted EBITDA (loss)                                              $       (17,633)         $  13,348


--------------

(1)Includes severance pay $2.4 million and other lease restructuring costs $0.3 million for the three months ended March 31, 2021.


(2)Includes sales tax liability of $0.3 million, litigation costs of $0.7
million, employee benefit cost of $0.2 million and consulting costs of $0.6
million for the three months ended March 31, 2022. Includes litigation costs of
$1.2 million and consulting costs of $0.1 million for the three months ended
March 31, 2021.

(3)Includes financial (income) expense which is primarily attributable to
currency rate fluctuations.
Our use of adjusted operating (loss) income has limitations as an analytical
tool, and you should not consider it in isolation or as a substitute for
analysis of our results as reported under GAAP. Some of these limitations are:

•  although amortization is a non-cash charge, the assets being amortized may
have to be replaced in the future, and adjusted operating (loss) income does not
reflect cash capital expenditure requirements for such replacements or for new
capital expenditure requirements;

• adjusted operating income does not take into account the impact of acquisitions;

• adjusted operating income does not take into account the impact of restructuring costs;

• adjusted operating income does not take into account the impact of other costs;

                                       40
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• Other companies, including companies in our industry, may calculate adjusted operating profit (loss) differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider adjusted operating income (loss) alongside other measures of financial performance, including various pretax GAAP losses and our other GAAP results. The following table provides a reconciliation of adjusted operating income for each of the periods indicated:


                                                                         Three Months Ended March 31,
                                                                            2022                  2021
                                                                            

(000s) Reconciliation of adjusted operating income (loss) Loss before income tax benefit

                                $       (65,557)         $ (22,046)
Amortization of purchased intangibles and finance leases                       6,257              1,550
Stock-based compensation                                                      31,866             14,611
Restructuring costs (1)                                                          (23)             2,732
Other litigation and consulting costs (2)                                      1,751              1,347
Contingent earn-out adjustments                                                    -                132
Acquisition costs                                                                419                  -
Interest expense, net                                                            490              9,129
Other income, net (3)                                                            (60)              (712)
Adjusted operating (loss) income                                     $      

(24,857) $6,743

————–

(1)Includes severance pay $2.4 million and other lease restructuring costs $0.3 million for the three months ended March 31, 2021.


(2)Includes sales tax liability of $0.3 million, litigation costs of $0.7
million, employee benefit cost of $0.2 million and consulting costs of $0.6
million for the three months ended March 31, 2022. Includes litigation costs of
$1.2 million and consulting costs of $0.1 million for the three months ended
March 31, 2021.

(3) Includes financial expenses (income) which are mainly attributable to fluctuations in exchange rates.





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                   Critical Accounting Policies and Estimates

Our condensed consolidated financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America. As
such, we are required to make certain estimates, judgments and assumptions that
management believes are reasonable based upon the information available. We base
these estimates on our historical experience, future expectations and various
other assumptions that we believe to be reasonable under the circumstances, the
results of which form the basis for our judgments that may not be readily
apparent from other sources. These estimates and assumptions affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the dates of the condensed consolidated financial statements and
the reported amounts of revenue and expenses during the reporting periods.

We believe that the assumptions and estimates associated with revenue
recognition, depreciation, stock-based compensation, accounts receivable, the
valuation of goodwill and intangible assets, income taxes and legal
contingencies have the greatest potential impact on our consolidated financial
statements. We evaluate these estimates on an ongoing basis. Actual results
could differ from those estimates under different assumptions or conditions, and
any differences could be material. The significant accounting policies which we
believe are the most critical to aid in fully understanding and evaluating the
reported consolidated financial results include the following:

Revenue recognition


The majority of our revenue is generated from hosted service revenues, which is
inclusive of our platform usage pricing model, and related professional services
from the sale of our services. Revenues are recognized when control of these
services is transferred to our customers, in an amount that reflects the
consideration we expect to be entitled to in exchange for those services. A
large proportion of our revenue from new customers comes from large
corporations. These companies typically have more significant implementation
requirements and more stringent data security standards. Such customers also
have more sophisticated data analysis and performance reporting requirements,
and are likely to engage our professional services organization to provide such
analysis and reporting on a recurring basis.

We determine revenue recognition through the following steps:

•identification of the contract(s) with a customer;

•identification of performance obligations in the contract;

•determination of the transaction price;

•the allocation of the transaction price to the performance obligations of the contract; and

•recognition of revenue when, or as we meet a performance obligation.

Total income of $130.2 million and $107.9 million was recorded during the three months ended March 31, 2022 and 2021, respectively.


We defer all incremental commission costs to obtain the contract ("contract
acquisition costs"). The contract acquisition costs consist of prepaid sales
commissions and have balances as of March 31, 2022 and December 31, 2021 of
$42.7 million and $40.7 million, respectively. We amortize these costs over the
related period of benefit using the expected life of the customer contract,
which we determine to be three to five years, consistent with the transfer to
the customer of the services to which the asset relates. We classify contract
acquisition costs as long-term unless they have an original amortization period
of one year or less.

Hosted Services – Business Revenue


Hosted services - Business revenue is reported at the amount that reflects the
ultimate consideration expected to be received and primarily consist of fees
that provide customers access to the Conversational Cloud. We have determined
such access represents a stand-ready service provided continually throughout the
contract term. As such, control and satisfaction of this stand-ready performance
obligation is deemed to occur over time. We recognize this revenue over time on
a ratable basis over the contract term, beginning on the date that access to the
Conversational Cloud platform is made available to the customer. The passage of
time is deemed to be the most faithful depiction of the transfer of control of
the services as the customer simultaneously receives and consumes the benefit
provided by our performance. Subscription contracts are generally one year or
longer in length, billed monthly, quarterly or annually in advance.
Additionally, for certain of our larger
                                       42
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customers, we may provide call center labor through an arrangement with one or
more of several qualified vendors. For most of these customers, we pass the fee
we incur with the labor provider and its fee for the hosted services through to
our customers in the form of a fixed fee for each order placed via our online
engagement solutions. For these Gainshare arrangements, we act as a principal in
a transaction if we control the specified goods or services before they are
transferred to the customer.

Revenue attributable to our monthly hosted Business services accounted for 82%
and 78% of total revenue for the three months ended March 31, 2022 and 2021,
respectively.

Professional services income


Professional Services revenue primarily consists of fees for deployment and
optimization services, as well as training delivered on an on-demand basis which
is deemed to represent a distinct stand-ready performance obligation and is
recognized at a point in time. Professional Services revenue is reported at the
amount that reflects the ultimate consideration we expect to receive in exchange
for such services. Control for the majority of our Professional Services
contracts passes over time to the customer and is recognized ratably over the
contracted period, as the passage of time is deemed to be the most faithful
depiction of the transfer of control. For certain deployment services, which are
not deemed to represent a distinct performance obligation, revenue will be
recognized in the same manner as the fee for access to the Conversational Cloud
platform, and as such will be recognized on a straight-line basis over the
contract term. For services billed on a fixed price basis, revenue is recognized
over time based on the proportion performed using time and materials as the
measure of progress toward complete satisfaction of the performance obligation.
Our Professional Services contracts are generally one year or longer in length,
billed monthly, quarterly or annually in advance. There is no significant
variable consideration related to these arrangements.

Revenue attributable to professional services represented 11% and 14% of total revenue for the three months ended March 31, 2022 and 2021, respectively.

Hosted Services – Consumer Revenue


For revenue from our Consumer segment generated from online transactions between
Experts and Users, revenue is recognized at an amount net of Expert fees
primarily because the Expert is the primary obligor. We do not act as a
principal in a transaction since we do not control the specified goods or
services before they are transferred to the customer. Additionally, we perform
as an agent without any risk of loss for collection, and we are not involved in
selecting the Expert or establishing the Expert's fee. We collect a fee from the
consumer and retain a portion of the fee, and then remit the balance to the
Expert. Revenue from these transactions is recognized at the point in time when
the transaction is complete and no significant performance obligations remain.

Revenues from our Consumer segment represented approximately 7% and 8% of total revenues for the three months ended March 31, 2022 and 2021, respectively.

Remaining performance obligation


As of March 31, 2022, the aggregate amount of the total transaction price
allocated in contracts with original duration of one year or greater to the
remaining performance obligations was $448.0 million. Approximately 91% of our
remaining performance obligations is expected to be recognized during the next
24 months, with the balance recognized thereafter. The aggregate balance of
unsatisfied performance obligations represents contracted revenue that has not
yet been recognized, and does not include contract amounts that are cancellable
by the customer, amounts associated with optional renewal periods, and any
amounts related to performance obligations, which are billed and recognized as
they are delivered. We have elected the optional exemption, which allows for the
exclusion of the amounts for remaining performance obligations that are part of
contracts with an original expected duration of less than one year. Such
remaining performance obligations represent unsatisfied or partially unsatisfied
performance obligations pursuant to ASC 606, "Revenue from Contracts with
Customers."

Contracts with multiple performance obligations


Some of our contracts with customers contain multiple performance obligations.
For these contracts, we account for individual performance obligations
separately if they are distinct. The transaction price is allocated to the
separate performance obligations on a relative standalone selling price basis.
We determine the standalone selling prices based on our overall pricing
objectives, taking into consideration market conditions and other factors,
including the value of our contracts, the cloud applications sold, and the
number and types of users within our contracts.
                                       43
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Deferred revenue


We record deferred revenues when cash payments are received or due in advance of
our performance. The increase in the deferred revenue balance as of March 31,
2022 is primarily driven by cash payments received or due in advance of our
performance obligations, partially offset by $55.4 million of revenues
recognized that were included in the deferred revenue balance as of December 31,
2021.

Stock-Based Compensation

We follow ASC 718-10, "Stock Compensation," which addresses the accounting for
transactions in which an entity exchanges its equity instruments for goods or
services, with a primary focus on transactions in which an entity obtains
employee services in share-based payment transactions. ASC 718-10 requires
measurement of the cost of employee services received in exchange for an award
of equity instruments based on the grant-date fair value of the award (with
limited exceptions). Incremental compensation costs arising from subsequent
modifications of awards after the grant date must be recognized.

Our forfeiture rate assumptions, which estimate the share-based awards that will
ultimately vest, requires judgment, and to the extent actual results or updated
estimates differ from our current estimates, such amounts will be recorded as a
cumulative adjustment in the period of change and could be materially different
from share-based compensation expense recorded in prior periods.

For the three months ended March 31, 2022 and 2021, we accrued approximately
$7.1 million and $5.3 million for cash awards, respectively, related to bonus to
be settled in shares of our stock and recorded a corresponding expense, which is
included as a component of stock-based compensation expense in the accompanying
condensed consolidated financial statements for the three months ended March 31,
2022 and 2021, respectively.

For the three months ended March 31, 2022 and 2021, there was approximately
$42.4 million and $17.6 million, respectively, of total unrecognized
compensation cost related to nonvested share-based compensation arrangements.
That cost is expected to be recognized over a weighted average period of
approximately 2.7 years. For the three months ended March 31, 2022 and 2021,
there was approximately $149.0 million and $65.7 million, respectively, of total
unrecognized compensation cost related to nonvested restricted stock units. That
cost is expected to be recognized over the remaining weighted average period of
approximately 3.1 years.

Non-cash compensation expenses

The net amounts of non-cash compensation are as follows:


                                        Three Months Ended
                                            March 31,
                                        2022           2021
                                          (In thousands)

Stock-based compensation expense $31,866 $14,611

Accounts Receivable


We perform ongoing credit evaluations of our customers' financial condition
(except for customers who purchase the LivePerson services by credit card via
Internet download) and have established an allowance for doubtful accounts based
upon factors surrounding the credit risk of customers, historical trends and
other information that we believe to be reasonable, although they may change in
the future. If there is a deterioration of a customer's credit worthiness or
actual write-offs are higher than our historical experience, our estimates of
recoverability for these receivables could be adversely affected. Although our
large number of customers limits our concentration of credit risk, if we
experience a significant write-off from one of our large customers, it could
have a material adverse impact on our condensed consolidated financial
statements. No single customer accounted for or exceeded 10% of our total
revenue for the three months ended March 31, 2022 and 2021. During the three
months ended March 31, 2022, we increased our allowance for doubtful accounts
from $6.3 million as of December 31, 2021 to approximately $7.2 million. A large
proportion of receivables are due from larger corporate customers that typically
have longer payment cycles. Accounts receivable is presented net of an allowance
for doubtful accounts and sales reserve of
                                       44
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$7.2 million and $3.9 million from March 31, 2022respectively, and $6.3 million and $4.1 million from December 31, 2021respectively.


An allowance for doubtful accounts is established for losses expected to be
incurred on accounts receivable balances. Judgment is required in the estimation
of the allowance and we evaluate the collectability of our accounts receivable
based on a combination of factors. If we become aware of a customer's inability
to meet its financial obligations, a specific allowance is recorded to reduce
the net receivable to the amount reasonably believed to be collectible from the
customer. For all other customers, we use an aging schedule and recognize
allowances for doubtful accounts based on the creditworthiness of the debtor,
the age and status of outstanding receivables, the current business environment
and our historical collection experience adjusted for current expectations for
the customer or industry. Accounts receivable are written off against the
allowance for uncollectible accounts when we determine amounts are no longer
collectible.

Goodwill

Goodwill represents the excess of the aggregate purchase price over the fair
value of net identifiable assets acquired in a business combination. Goodwill is
not amortized and is tested for impairment at least annually or whenever events
or changes in circumstances indicate that the carrying value may not be
recoverable. We have determined that we operate as three reporting units and
have selected September 30 as the date to perform our annual impairment test. In
the valuation of goodwill, management must make assumptions regarding estimated
future cash flows to be derived from our business. If these estimates or their
related assumptions change in the future, we may be required to record
impairment for these assets.

We have the option to first perform a qualitative assessment to determine if it
is more likely than not that the fair value of a reporting unit is less than its
carrying amount. However, we may elect to bypass the qualitative assessment and
proceed directly to the quantitative impairment tests. The impairment test
involves comparing the fair value of the reporting unit to its carrying value,
including goodwill. A goodwill impairment will be the amount by which a
reporting unit's carrying value exceeds its fair value. The impairment is
limited to the carrying amount of goodwill.

No goodwill impairment charge has been recorded for any of the periods presented.

Impairment of long-lived assets


The carrying amounts of our long-lived assets, including property and equipment,
lease right of use assets, capitalized internal-use software, costs to obtain
customer contracts, and acquired intangible assets, are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying value of
these assets may not be recoverable or that the useful lives are shorter than
originally estimated. Recoverability of assets to be held and used is measured
by comparing the carrying amount of an asset to future undiscounted net cash
flows the asset is expected to generate over its remaining life. If the asset is
considered to be impaired, the amount of any impairment is measured as the
difference between the carrying value and the fair value of the impaired asset.
If the useful life is shorter than originally estimated, we amortize the
remaining carrying value over the new shorter useful life.

Income taxes


Income taxes are accounted for under the asset and liability method. Under this
method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases and operating loss and tax credit carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled. In assessing the realizability of deferred tax assets,
management considers whether it is more likely than not that some portion or all
of the deferred tax assets will be realized. The ultimate realization of
deferred tax assets is dependent upon the generation of future taxable income
during the periods in which those temporary differences are expected to become
deductible. Management considers the scheduled reversal of deferred tax
liabilities, projected future taxable income and tax planning strategies in
making this assessment. The Company includes interest accrued on the
underpayment of income taxes in interest expense and penalties, if any, related
to unrecognized tax benefits in general and administrative expenses. The Company
recorded a valuation allowance against its U.S. and Germany deferred tax assets
as it considered its cumulative loss in recent years as a significant piece of
negative evidence. Since valuation allowances are evaluated on a jurisdiction by
jurisdiction basis, we believe that the deferred tax assets related to
LivePerson Australia Holdings Ptd. Ltd., LivePerson (UK) Limited, Kasamba Inc.,
LivePerson Japan and LivePerson Limited. (Israel) are more likely than not
                                       45
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to be realized given that these jurisdictions have positive cumulative pre-tax accounting income after adjusting for permanent and non-recurring items. During the year ended
December 31, 2021there was an increase in the recorded valuation of
$51.7 million.

Legal contingencies


We are subject to legal proceedings and litigation arising in the ordinary
course of business. Periodically, we evaluate the status of each legal matter
and assess our potential financial exposure. If the potential loss from any
legal proceeding or litigation is considered probable and the amount can be
reasonably estimated, we accrue a liability for the estimated loss. Significant
judgment is required to determine the probability of a loss and whether the
amount of the loss is reasonably estimable. The outcome of any proceeding is not
determinable in advance. As a result, the assessment of a potential liability
and the amount of accruals recorded are based only on the information available
at the time. As additional information becomes available, we reassess the
potential liability related to the legal proceeding or litigation, and may
revise our estimates. Any revisions could have a material effect on our results
of operations. See Note 15 - Legal Matters for additional information on our
legal proceedings and litigation.

Recently issued accounting standards


Except as referenced below under "Recently Adopted Accounting Pronouncements,"
there were no other recently issued accounting pronouncements or changes in
accounting pronouncements during the quarter ended March 31, 2022, that are of
significance or potential significance to the Company.

Recently Adopted Accounting Pronouncements

See Note 1 – Description of Business and Basis of Presentation for a complete description of recently adopted accounting pronouncements.

                             Results of Operations

We are organized into two operating segments for purposes of making operating
decisions and assessing performance. The Business segment enables brands to
leverage the Conversational Cloud's sophisticated intelligence engine to connect
with consumers through an integrated suite of mobile and online business
messaging technologies. The Consumer segment facilitates online transactions
between Experts and Users seeking information and knowledge for a fee via mobile
and online messaging.

     Comparison of the Three Months Ended March 31, 2022 and March 31, 2021

Revenue


The following tables set forth our results of operations for the periods
presented and as a percentage of our revenues for those periods. The
period-to-period comparison of financial results is not necessarily indicative
of future results.

                                              Three Months Ended March 31,
                                           2022                  2021         % Change
                                          (Dollar in thousands)
         Revenue by Segment:
         Business                $      121,075               $  98,880           22  %
         Consumer                         9,122                   9,011            1  %
         Total                   $      130,197               $ 107,891           21  %


Business revenue increased by 22% to $121.1 million for the three months ended
March 31, 2022 from $98.9 million for the comparable period in 2021. The
increase in B2B revenue during the three months ended March 31, 2022 is driven
mainly by year-over-year increase in hosted services of $22.7 million. Included
in hosted services is an increase in revenue that is variable based on
interaction and usage of approximately $8.8 million. The increase in Business
revenue was driven in nearly equal parts by existing and new customers as we
generated greater demand for its Conversational Commerce software and Gainshare
solutions. Business revenue also benefited from timing of revenue between the
first and second quarter. Our ARPU for our enterprise and mid-market customers
was approximately $645,000 for the trailing twelve months ended March 31, 2022,
as compared to approximately $490,000 for the comparable period in 2021.
Similarly, we are seeing strong revenue retention rates. Revenue retention rate
for enterprise and mid-market customers on the Conversational Cloud was within
our target range
                                       46
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105% to 115% in the first quarter of 2022 and exceeded the upper end of our target range of 105% to 115% in the first quarter of 2021.

Consumer income increased by 1% to reach $9.1 million for the three months ended
March 31, 2022 from $9.0 million for the comparable period in 2021. This improvement was driven by increasingly effective user value and stable consumer demand to engage with experts and advisors through conversational messaging channels.

Cost of Revenue – Business


Cost of revenue - business consists of compensation costs relating to employees
who provide customer service to our customers, compensation costs relating to
our network support staff, outside labor provider costs, the cost of supporting
our server and network infrastructure, and allocated occupancy costs and related
overhead.

                                                 Three Months Ended March 31,
                                          2022                       2021         % Change
                                              (Dollar in thousands)
      Cost of revenue - business    $      48,221                 $ 31,610            53  %
      Percentage of total revenue              37   %                   29  %
      Headcount (at period end)               218                      251           (13) %


Cost of revenue - business increased by 53% to $48.2 million for the three
months ended March 31, 2022, from $31.6 million for the comparable period in
2021. This increase in expense is primarily attributable to business services
and outsourced subcontracted labor of approximately $7.7 million driven by
Health and Gainshare services, which power Conversational Commerce programs on
behalf of customers. We also recognized an increase in expenses for backup
server facilities of approximately $3.4 million, in amortization expense of
approximately $3.2 million, an increase in salary and employee related expenses
of approximately $1.9 million.

Revenue Cost – Consumer


Cost of revenue - consumer consists of compensation costs relating to employees
who provide customer service to Experts and Users, compensation costs relating
to our network support staff, the cost of supporting our server and network
infrastructure, credit card and transaction processing fees and related costs,
and allocated occupancy costs and related overhead.

                                                 Three Months Ended March 31,
                                          2022                        2021        % Change
                                              (Dollar in thousands)
      Cost of revenue - consumer    $      1,346                   $ 1,909           (29) %
      Percentage of total revenue              1   %                     2  %
      Headcount (at period end)               13                        24           (46) %


Cost of revenue - consumer decreased by 29% to $1.3 million for the three months
ended March 31, 2022 from $1.9 million for the comparable period in 2021. This
decrease in expense is primarily related to a decrease in salary and employee
related expenses of approximately $0.2 million and in credit card processing
fees of approximately $0.2 million.

Sales and Marketing – Business


Sales and marketing - business expenses consist of compensation and related
expenses for sales and marketing personnel, as well as advertising, marketing
events, public relations, trade show exhibit expenses and allocated occupancy
costs and related overhead.

                                                  Three Months Ended March 31,
                                           2022                       2021         % Change
                                               (Dollar in thousands)
    Sales and marketing - business   $      52,283                 $ 30,203            73  %
    Percentage of total revenue                 40   %                   28
 %
    Headcount (at period end)                  701                      312           125  %


                                       47
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Sales and marketing - business expenses increased by 73% to $52.3 million for
the three months ended March 31, 2022 from $30.2 million for the comparable
period in 2021. This increase was primarily attributable to an increase in
salary and related employee expenses of approximately $15.1 million, an increase
in marketing expense of approximately $4.3 million, an increase in business
services of approximately $1.8 million, and an increase in backup server
facilities of approximately $0.9 million.

We have adjusted our marketing and hiring efforts to account for the impact of
the COVID-19 pandemic. In particular, we have adapted our marketing strategy to
include targeted digital experiences that emphasize the unique positioning of
our messaging and AI offerings to help brands succeed in this new environment.
Our marketing message has shifted to include business continuity and
virtualization of the contact center in addition to business improvement.

Sales and Marketing – Consumer

Sales and Marketing – Consumer spending includes compensation and related expenses for marketing personnel, as well as online promotion, public relations and allocated occupancy costs and related overhead.

                                                  Three Months Ended March 31,
                                           2022                        2021        % Change
                                               (Dollar in thousands)
    Sales and marketing - consumer   $      5,849                   $ 6,750

(13)%

    Percentage of total revenue                 4   %                     6

%

    Headcount (at period end)                  16                        19

(16)%



Sales and marketing - consumer expenses decreased by 13% to $5.8 million for the
three months ended March 31, 2022 from $6.8 million for the comparable period in
2021. This decrease is primarily attributable to a decrease in marketing expense
of approximately $0.5 million, a decrease in business services and outsourced
subcontracted labor of approximately $0.4 million, and a decrease in salary and
related expenses of approximately $0.1 million, partially offset by a an
increase in backup server facilities of approximately $0.1 million.

General and administrative

Our general and administrative expenses include compensation and related costs of management, accounting, legal, human resources and administrative personnel, professional fees and other general corporate expenses.

                                                 Three Months Ended March 31,
                                          2022                       2021         % Change
                                              (Dollar in thousands)
      General and administrative    $      29,735                 $ 14,486           105  %
      Percentage of total revenue              23   %                   13  %
      Headcount (at period end)               165                      111            49  %


General and administrative expenses increased by 105% to $29.7 million for the
three months ended March 31, 2022 from $14.5 million for the comparable period
in 2021. This increase is primarily related to an increase in salary and
employee related expenses of approximately $11.1 million, an increase in
business services and outsourced labor of approximately $1.8 million, an
increase in facilities of approximately $1.2 million, and an increase in hosting
services of approximately $1.1 million.


                                       48
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Product development


Our product development expenses consist of compensation and related expenses
for product development personnel as well as allocated occupancy costs and
related overhead and outsourced labor and expenses for testing new versions of
our software.

                                                 Three Months Ended March 31,
                                          2022                       2021         % Change
                                              (Dollar in thousands)
      Product development           $      56,072                 $ 33,455            68  %
      Percentage of total revenue              43   %                   31  %
      Headcount (at period end)               674                      501            35  %


Product development costs increased by 68% to $56.1 million for the three months
ended March 31, 2022 from $33.5 million for the comparable period in 2021. This
increase is primarily related to an increase in salaries and employee related
expenses of approximately $16.2 million, an increase in business services and
outsourcing subcontracted labor of approximately $4.6 million, an increase in
credit card processing and bank fees of $1.2 million, and an increase in
depreciation expense of approximately $0.6 million. We continued to make
investments in public cloud migration, and in enhancing and expanding new
features of the Conversational Cloud, including Voice. Also, we continued to
invest in bringing more data scientists and machine learning engineers to focus
on Conversational AI.

We continue to invest in new product development efforts to expand the
capability of Conversational Cloud. Upon completion, the project costs will be
depreciated over five years. For the three months ended March 31, 2022,
$9.8 million was capitalized, compared to $8.2 million for the comparable period
in 2021.

Restructuring Costs

Restructuring costs consist of reprioritizing and reallocating resources to focus on areas considered to have high growth potential.

                                                 Three Months Ended March 31,
                                         2022                         2021        % Change
                                              (Dollar in thousands)
      Restructuring costs           $      (23)                    $ 2,732          (101) %
      Percentage of total revenue            -   %                       3  %


Restructuring costs decreased by 101% to less than $0.1 million during the three
months ended March 31, 2022 from $2.7 million for the comparable period in 2021.
The restructuring cost for the three months ended March 31, 2021 was a result of
our partnership with Infosys to transform our technology infrastructure on the
public cloud, to build integrated solutions and a global practice around our
Conversational Cloud, and to redefine how brands communicate. This variance was
primarily attributable to an increase in restructuring costs related to lease
abandonment, along with severance and other compensation costs.

Amortization of purchased intangible assets

Three months completed March, 31st,

                                                             2022                  2021                % Change
                                                              (Dollar in 

thousands)

Amortization of purchased intangibles                 $        1,841           $     375                      391  %
Percentage of total revenues                                       1   %               -  %


Amortization expense for purchased intangibles increased by 391% to $1.8 million
for the three months ended March 31, 2022 from $0.4 million for the comparable
period in 2021. The increase is primarily attributable to amortization of
patents and customer relationships as well as the intangible assets acquired in
the acquisitions of VoiceBase, Tenfold, and e-bot7 that occurred in 2021 and the
acquisition of WildHealth in the first quarter of 2022.
                                       49
--------------------------------------------------------------------------------

An additional depreciation charge of an amount of $4.4 million and $1.2 million
for the three months ended March 31, 2022 and 2021 is included in the cost of sales.

Other expenses, net


Other expense, net consists of interest income on cash and cash equivalents,
investment income and financial (expense) income which is a result of currency
rate fluctuations associated with exchange rate movement of the U.S. dollar
against the New Israeli Shekel ("NIS"), British Pound, Euro, Australian Dollar,
and Japanese Yen.

                                            Three Months Ended March 31,
                                          2022                   2021        % Change
                                         (Dollar in thousands)
          Interest expense     $       (490)                  $ (9,129)     

(95)%

          Other income, net              60                        712      

(92)%

          Other expense, net   $       (430)                  $ (8,417)     

(95)%



Other expense, net decreased to $0.4 million for the three months ended
March 31, 2022, respectively, from other expense of $8.4 million for the
comparable periods in 2021 primarily due to the adoption of ASU 2020-06 and the
elimination of the debt discount that was previously being amortized to interest
expense over the contractual term of the Notes.

Benefit from Income Taxes

                                                 Three Months Ended March 31,
                                                2022                    2021       % Change
                                              (Dollar in thousands)
     Benefit from income taxes     $         (193)                    $ 

(851) (77)%



Benefit from income taxes was $0.2 million and $0.9 million for the three months
ended March 31, 2022 and 2021, respectively. Our consolidated effective tax rate
was impacted by the statutory income tax rates applicable to each of the
jurisdictions in which we operate.

The tax benefit of $0.2 million for the period was made up of a tax benefit for
the period of $1.2 million on operating earnings coupled with a stock
compensation tax deficiency of $0.2 million related to the stock compensation
arrangements of LivePerson, Inc., LivePerson (UK) Limited and LivePerson Limited
(Israel). During the quarter, the Company acquired WildHealth in a non-taxable
transaction that resulted in a tax provision of $1.6 million related to the
release of valuation allowance on certain LivePerson, Inc. (acquirer) net
operating losses.

© Edgar Online, source Previews

]]>
Artificial Intelligence Market 2021 Business Development – Intel Corporation, Oracle, Google Inc, Welltok, Inc, Salesforce, Nvidia Corporation, Amazon Web S – ManufactureLink https://zurc2.com/artificial-intelligence-market-2021-business-development-intel-corporation-oracle-google-inc-welltok-inc-salesforce-nvidia-corporation-amazon-web-s-manufacturelink/ Mon, 09 May 2022 01:39:21 +0000 https://zurc2.com/artificial-intelligence-market-2021-business-development-intel-corporation-oracle-google-inc-welltok-inc-salesforce-nvidia-corporation-amazon-web-s-manufacturelink/ the artificial intelligence in The report is an in-depth examination of the overall consumption structure, development trends, sales techniques and sales of the major Artificial Intelligence nations in the world. The research covers well-known vendors in the global Artificial Intelligence industry along with market segmentation, competition, and macroeconomic climate. A comprehensive AI analysis takes into […]]]>

the artificial intelligence in The report is an in-depth examination of the overall consumption structure, development trends, sales techniques and sales of the major Artificial Intelligence nations in the world. The research covers well-known vendors in the global Artificial Intelligence industry along with market segmentation, competition, and macroeconomic climate. A comprehensive AI analysis takes into account a number of aspects, including a country’s population and economic cycles, as well as market-specific microeconomic consequences. The global market study also includes a specific section on the competition landscape to help you better understand the Artificial Intelligence industry. This information can help stakeholders make informed decisions before investing.

Main players in Artificial Intelligence including:

Intel Corporation, Oracle, Google Inc, Welltok, Inc, Salesforce, Nvidia Corporation, Amazon Web Services, Microsoft Corporation, IBM Corporation, Next IT Corporation, Facebook Inc, Twitter, Albert Technologies, Oculus360

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The report is categorized into several sections which consider competitive environment, latest market events, technological developments, countries and regional details related to Artificial Intelligence in. The section that details the pandemic impact, recovery strategies and post-pandemic market performance of each player is also included in the report. Major opportunities that may support Artificial Intelligence in are identified in the report. The report focuses specifically on near-term opportunities and strategies to realize one’s full potential. Crucial uncertainties for market players to understand are included in the Artificial Intelligence report.

Due to these issues, artificial intelligence in the industry has been hampered. Due to the small number of significant companies in the industry, the field of artificial intelligence in is heavily targeted. Customers would benefit from this research as they would be informed about the current scenario of artificial intelligence in. The latest innovations, product news, product variants, and in-depth updates from industry specialists who have effectively harnessed artificial intelligence in position are all included in this research study. Many businesses would benefit from artificial intelligence in a research study to identify and grow their global demand. Micro and macro trends, significant developments, and their use and penetration among a wide variety of end users are also included in the Artificial Intelligence segment in.

Market analysis done with statistical tools also helps to analyze many aspects including demand, supply, storage costs, maintenance, profit, sales and production details of the market. In addition, the global Artificial Intelligence in research report provides details about Artificial Intelligence in share, import volume, export volume and gross margin of companies.

Artificial Intelligence in Segmentation by Type:

Hardware, Software, Services.

Artificial Intelligence in Segmentation by Application:

Corporate, BFSI, Retail, Consumer Goods, Media & Advertising, Other

Artificial intelligence in the report answers a few key questions:

  • What is the expected growth of global artificial intelligence after the discovery of a vaccine or treatment for covid-19?
    • What are the new business practices that can be implemented post-pandemic to remain competitive, agile, customer-centric and collaborative in the world of Artificial Intelligence?
    • Which specific sectors are expected to drive the growth of global artificial intelligence?
    • What are the key government policies and interventions implemented by global AI leaders in countries to drive the adoption or growth of AI in .
    • How have market players or world leaders in Artificial Intelligence in companies responded to the challenges encountered during the pandemic?
    • What growth opportunities does global Artificial Intelligence offer?

Report Highlights:

  • The report provides Artificial Intelligence in Industry Demand Trends in Q1 and Q2 2021.
    • The individual circumstances of the Artificial Intelligence In segments are discussed in the report.
    • The report contains forward-looking information about risks and uncertainties.
    • The report investigates consumer-driven sectors of artificial intelligence in.
    • Business scenarios of products and services in particular segments are detailed in the report along with regulation, taxes and tariffs.
    • Trends that are impacting Artificial Intelligence in recent years are discussed in the report.
    • The report studies the potential impact of the Covid-19 pandemic on the economy of the Artificial Intelligence industry and the performance of market players in the same context.

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Contents:

1 Scope of the report
1.1 Market Overview
1.2 Research objectives
1.3 Years considered
1.4 Market research methodology
1.5 Economic indicators
1.6 Currency considered
2 Executive summary
3 Global Artificial Intelligence by Players
4 Artificial Intelligence by Regions
4.1 Artificial Intelligence in Size by Regions
4.2 Americas Artificial Intelligence Growing in Size
4.3 APAC Artificial Intelligence Growing in Size
4.4 Europe Artificial Intelligence Size Growth
4.5 Middle East & Africa Artificial Intelligence Size Growth
5 Americas
6 APACs
7Europe
8 Middle East and Africa
9 Market Drivers, Challenges and Trends
9.1 Market Drivers and Impact
9.1.1 Growing Demand from Key Regions
9.1.2 Growing Demand from Key Applications and Potential Industries
9.2 Market Challenges and Impact
9.3 Market trends
10 global artificial intelligence in anticipation
Analysis of the 11 key players
12 Research findings and conclusion

MR Accuracy Reports is the world’s largest publisher and has published over 2 million reports worldwide. Fortune 500 companies work with us. Also help small players to know the market and focus on advice.

]]>
$71.00 million in sales expected for The Hackett Group, Inc. (NASDAQ:HCKT) this quarter https://zurc2.com/71-00-million-in-sales-expected-for-the-hackett-group-inc-nasdaqhckt-this-quarter/ Tue, 03 May 2022 06:50:01 +0000 https://zurc2.com/71-00-million-in-sales-expected-for-the-hackett-group-inc-nasdaqhckt-this-quarter/ Brokers expect The Hackett Group, Inc. (NASDAQ:HCKT – Get Rating) to report sales of $71.00 million for the current fiscal quarter, according to Zacks. Two analysts provided earnings estimates for The Hackett Group. The Hackett Group reported sales of $63.41 million in the same quarter last year, suggesting a positive year-over-year growth rate of 12%. […]]]>

Brokers expect The Hackett Group, Inc. (NASDAQ:HCKT – Get Rating) to report sales of $71.00 million for the current fiscal quarter, according to Zacks. Two analysts provided earnings estimates for The Hackett Group. The Hackett Group reported sales of $63.41 million in the same quarter last year, suggesting a positive year-over-year growth rate of 12%. The company is expected to release its next quarterly earnings report after the market closes on Monday, January 1.

On average, analysts expect The Hackett Group to report annual revenue of $298.35 million for the current fiscal year, with estimates ranging from $297.00 to $299.70 million. . For the next fiscal year, analysts expect the company to post sales of $327.00 million. Zacks sales averages are an average average based on a survey of analysts who cover The Hackett Group.

The Hackett Group (NASDAQ:HCKT – Get Rating) last released its results on Tuesday, February 22. The business services provider reported EPS of $0.26 for the quarter, beating analyst consensus estimates of $0.23 by $0.03. The Hackett Group had a net margin of 14.90% and a return on equity of 23.29%. The company posted revenue of $69.78 million for the quarter, versus $65.85 million expected by analysts. During the same period a year earlier, the company posted earnings per share of $0.16.

(A d)

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HCKT has been the subject of a number of recent research reports. Zacks Investment Research upgraded shares of The Hackett Group from a “buy” rating to a “hold” rating in a Tuesday, April 26 research report. StockNews.com assumed coverage of The Hackett Group shares in a Thursday, March 31 report. They set a “Strong Buy” rating for the company. One research analyst has rated the stock with a hold rating, three have issued a buy rating and one has assigned the company a strong buy rating. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $25.00.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Avantax Advisory Services Inc. increased its equity stake in The Hackett Group by 7.2% in Q1. Avantax Advisory Services Inc. now owns 26,979 shares of the business services provider valued at $623,000 after purchasing an additional 1,810 shares during the period. Exchange Traded Concepts LLC acquired a new position in shares of The Hackett Group in Q1 valued at approximately $577,000. Barclays PLC increased its holdings of The Hackett Group shares by 197.0% in Q4. Barclays PLC now owns 29,815 shares of the business services provider valued at $612,000 after buying an additional 19,777 shares during the period. Parametric Portfolio Associates LLC increased its holdings of The Hackett Group shares by 1.5% in the fourth quarter. Parametric Portfolio Associates LLC now owns 93,095 shares of the business services provider valued at $1,911,000 after purchasing an additional 1,368 shares during the period. Finally, Grandeur Peak Global Advisors LLC increased its stake in The Hackett Group shares by 96.0% in the 4th quarter. Grandeur Peak Global Advisors LLC now owns 527,476 shares of the business services provider valued at $10,829,000 after purchasing an additional 258,395 shares during the period. 74.11% of the shares are held by institutional investors and hedge funds.

The NASDAQ HCKT opened at $23.75 on Tuesday. The stock’s fifty-day moving average price is $22.45. The Hackett Group has a 52 week low of $15.83 and a 52 week high of $24.48. The company has a market capitalization of $750.38 million, a PE ratio of 18.85, a P/E/G ratio of 1.32 and a beta of 0.65.

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 8. Shareholders of record on Friday, March 25 received a dividend of $0.11 per share. This is a positive change from The Hackett Group’s previous quarterly dividend of $0.10. This represents an annualized dividend of $0.44 and a yield of 1.85%. The ex-dividend date was Thursday, March 24. The Hackett Group’s dividend payout ratio (DPR) is currently 34.92%.

About Hackett Group (Get an evaluation)

The Hackett Group, Inc operates as a strategic consulting and technology advisory firm primarily in North America and internationally. It offers an information center on best practices, a repository that can be consulted online; best practice accelerators that provide web-based access to best practices, custom software configuration tools, and best practice process flows; an advisor’s inquiry for access to evidence-based advice on proven approaches and methods; best practice research that provides insight into proven approaches; and peer-to-peer interaction including member-led webcasts, annual best practice conferences, annual member forums, member performance surveys and customer-submitted content, and intellectual property programs as a service and the Hackett Institute.

See also

Get a Free Copy of Zacks’ Research Report on The Hackett Group (HCKT)

For more information on Zacks Investment Research’s research offerings, visit Zacks.com

This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]

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ENECHANGE: Notice of installation of the ENECHANGE EV charging service (JIT Group Inc.) https://zurc2.com/enechange-notice-of-installation-of-the-enechange-ev-charging-service-jit-group-inc/ Tue, 26 Apr 2022 06:30:22 +0000 https://zurc2.com/enechange-notice-of-installation-of-the-enechange-ev-charging-service-jit-group-inc/ Press release April 26, 2022 ENECHANGE Ltd. 18 ENECHANGE EV charging stations installed on sites owned by JIT Group in Yamanashi – the first facility in the prefecture ENECHANGE Ltd. is pleased to announce that it has installed a total of 18 charging stations under the ENECHANGE EV charging service at seven JIT Group facilities, […]]]>

Press release

April 26, 2022 ENECHANGE Ltd.

18 ENECHANGE EV charging stations installed on sites owned by JIT Group in

Yamanashi – the first facility in the prefecture

ENECHANGE Ltd. is pleased to announce that it has installed a total of 18 charging stations under the ENECHANGE EV charging service at seven JIT Group facilities, including its ceremonial halls in Yamanashi Prefecture and its corporate headquarters.

This is the first installation of this service in Yamanashi Prefecture. By providing an affordable and convenient EV charging service that offers 6kW dual-speed charging at a charging rate equivalent to home charging*, we will drive the spread and expansion of EV charging infrastructure and contribute to local communities.

*Rate per kWh obtained by adding a surcharge for promoting renewable energy generation and fuel cost adjustment at the third level of the tariff to the electricity volume of metered electric light A of Tokyo Electric Power Company.

Charging station for ENECHANGE EV charging service installed at JIT Ceremony Wakakusa HallOverview of the service and facilities where the ENECHANGE EV charging service is installed

The expansion of charging infrastructure is urgently needed to foster the spread of electric vehicles (EVs). The ENECHANGE EV charging service was recently introduced at the parking lots of seven JIT Group ceremonial halls in Yamanashi Prefecture, as well as the affiliated Yamanashi Obosi Park. The service is also available for non-ceremonial users. The installation of electric vehicle charging stations in the parking lot of the company’s headquarters is also expected to contribute to the local community and be an added benefit for employees.

The number of EVs and PHEVs per 10,000 people in Yamanashi Prefecture is 22, ranking 16th in Japan*. We will continue to help spread electric vehicle charging infrastructure in cooperation with companies working to build local communities and achieve the goals of the SDGs.

*Calculated by ENECHANGE based on the “Status of Subsidies by Prefecture” of the Center for the Promotion of New Generation Vehicles, the number of subsidies granted for electric vehicles and PHEVs (fiscal years 2009-2019) and population estimates for October 2019.

Location: 9 establishments 18 units

Facility name

Location

Number of EV charging stations installed (unit)

JIT Ceremony Tatomi Hall

Chuo Town, Yamanashi

2

JIT Ceremony Futaba Room

Kai Town, Yamanashi

2

JIT Ceremony Kofu Hall

Kofu City, Yamanashi

2

JIT Ceremony Sangun Hall

Minami Alps City, Yamanashi

2

JIT Ceremony Wakakusa Hall

Minami Alps City, Yamanashi

2

JIT Ceremony Ichikawa Hall

Nishiyatushiro-gun, Yamanashi

2

JIT Ceremony Isawa Hall

Fuefuki Town, Yamanashi

2

Yamanashi Obosi Park

Minamikoma Pistol, Yamanashi

2

JIT Group Inc.

Minami Alps City, Yamanashi

2

* Electric vehicle charging service at JIT Ceremony Facility and Obishi Park will be available towards the end of Golden Week.

Presentation of the charger

Cost of using

Charging in April 2022: 34.39 yen/10 minutes (equivalent to 1 kWh: unit price of electric lights measured by Tokyo Electric Power Company is used)

*Rates vary monthly due to the addition of a surcharge for promoting renewable energy generation, fuel cost adjustment, etc., to the electricity unit rates of major regional companies in electricity. However, since the electricity tariffs are equivalent to those of ordinary households, there is no difference with the electricity tariffs charged at home.

Model installed

  • Pit-2G”, Nitto Kogyo

  • Maximum power: 6 kW *capable of charging at twice the speed of ordinary chargers (3 kW)

  • Connector: Type 1 standard, usable with all EVs and PHVs

    *Tesla requires conversion adapter

  • Voltage: 200V (AC)

  • Charging cable length: approx. 5 meters

Manual

The ENECHANGE EV charging service does not require prior registration. Scan the QR code on the main body of ENECHANGE EV charging station with your smartphone camera to save your credit card information and user information. Follow the instructions displayed on the web version (which will be replaced by an app in the future) to connect the charger. Users can see the start of charging and the status during charging, while the end of the charging session will be notified by push notification.

■ About the ENECHANGE EV charging service

The ENECHANGE EV charging service allows the installation of electric vehicle charging systems at minimal cost, ideal for charging in public facilities, commercial facilities, accommodation establishments and other public destinations. It is developing rapidly at the dawn of 2022. To improve the comfort of electric vehicle drivers, we are developing various software, including a smartphone application scheduled for release in the summer of 2022.

ENECHANGE EV charging service website: https://ev-charge.enechange.jp/ *Japanese only

■About ENECHANGE Ltd.

ENECHANGE is an energy technology company that promotes a carbon-free society through digital technology with a mission to change energy for a better world. We offer services based on the use of data in the field of the 4Ds of energy: deregulation, digitization, decarbonization and decentralization. Our company’s roots come from an energy data lab at the University of Cambridge, UK, a country where liberalization has come of age. ENECHANGE has a UK subsidiary, SMAP Energy Limited, as well as a global network and energy data analysis technology.

URL: https://enechange.co.jp/en/

■About JIT Group Inc.

The main activity of the JIT group is in ink and toner cartridges (recycled). In addition to this, they also manage several types of real estate including ceremonial venues among other business activities. The company is active in promoting SDG initiatives, including marketing the world’s first recycled ink in 1999, installing collection boxes at more than 17,000 locations nationwide, and collecting approximately 26 million cartons of ink per year, reducing approximately 2,000 tons. CO2 emissions. URL: https://www.jit-c.co.jp/

■For requests

ENECHANGE Ltd.

PR: pr@enechange.co.jp IR: ir@enechange.co.jp

■For any inquiries about the ENECHANGE EV charging service Electric Vehicle Charging Services Division ev-chargement@enechange.co.jp

]]>
Freshworks Inc. (NASDAQ:FRSH) is expected to report earnings of -$0.05 per share https://zurc2.com/freshworks-inc-nasdaqfrsh-is-expected-to-report-earnings-of-0-05-per-share/ Sun, 24 Apr 2022 08:17:34 +0000 https://zurc2.com/freshworks-inc-nasdaqfrsh-is-expected-to-report-earnings-of-0-05-per-share/ Stock analysts expect Freshworks Inc. (NASDAQ:FRSH – Get Rating) to report ($0.05) earnings per share for the current quarter, according to Zacks. Six analysts released earnings estimates for Freshworks, with estimates ranging from ($0.06) to ($0.05). The company is expected to release its next quarterly results after the market closes on Monday, January 1. According […]]]>

Stock analysts expect Freshworks Inc. (NASDAQ:FRSH – Get Rating) to report ($0.05) earnings per share for the current quarter, according to Zacks. Six analysts released earnings estimates for Freshworks, with estimates ranging from ($0.06) to ($0.05). The company is expected to release its next quarterly results after the market closes on Monday, January 1.

According to Zacks, analysts expect Freshworks to report annual earnings of $0.21 per share for the current year, with EPS estimates ranging from $0.22 to $0.20. For next year, analysts expect the company to report earnings of ($0.12) per share, with EPS estimates ranging from ($0.15) to ($0.09). Zacks’ EPS calculations are an average average based on a survey of sell-side research analysts who cover Freshworks.

Freshworks (NASDAQ:FRSH – Get Rating) last released its quarterly results on Thursday, February 10. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.02). The company posted revenue of $105.48 million for the quarter, versus a consensus estimate of $100.34 million. The company’s revenue for the quarter increased 44.5% year over year.

FRSH has been the subject of several recent analyst reports. Piper Sandler cut her price target on Freshworks shares from $38.00 to $36.00 and set an “overweight” rating for the company in a Friday, Feb. 11 report. Robert W. Baird lowered his target price on Freshworks shares from $50.00 to $40.00 in a Friday, Feb. 11 research note. Jefferies Financial Group lowered its price target on Freshworks shares from $50.00 to $25.00 and placed a “hold” rating on the stock in a Thursday, Jan. 6 research note. Barclays lowered its target price on Freshworks shares from $45.00 to $27.00 in a Wednesday, January 12 research note. Finally, Needham & Company LLC lowered its target price on Freshworks shares from $58.00 to $40.00 in a Friday, February 11 research note. One equity research analyst rated the stock with a sell rating, two gave the company’s stock a hold rating and three gave the company’s stock a buy rating. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $32.38.

Separately, CRO Jose Morales sold 1,984 shares of the company in a trade dated Tuesday, April 19. The shares were sold at an average price of $20.00, for a total transaction of $39,680.00. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Additionally, director Randy Gottfried sold 112,500 shares of the company in a transaction dated Monday, February 14. The shares were sold at an average price of $20.38, for a total transaction of $2,292,750.00. The disclosure of this sale can be found here. In the past three months, insiders have sold 151,994 shares of the company worth $3,031,422.

Hedge funds and other institutional investors have recently been buying and selling shares of the company. Cubist Systematic Strategies LLC acquired a new position in Freshworks in the third quarter worth approximately $27,000. Moors & Cabot Inc. acquired a new position in Freshworks in the third quarter worth approximately $506,000. Atom Investors LP acquired a new position in Freshworks in the third quarter worth approximately $268,000. Squarepoint Ops LLC acquired a new position in Freshworks in the third quarter worth approximately $305,000. Finally, CNH Partners LLC acquired a new position in Freshworks in the third quarter worth approximately $317,000. 20.39% of the shares are currently held by institutional investors.

NASDAQ FRSH shares opened at $17.78 on Friday. The company has a fifty-day moving average of $18.65. Freshworks has a one-year minimum of $15.60 and a one-year maximum of $53.36.

Freshworks Company Profile (Get an evaluation)

Freshworks Inc, a software development company, provides modern software products as a service worldwide. The company offers Freshdesk Support Desk which enables businesses to delight customers at every service engagement touchpoint across traditional channels, including email, as well as modern channels, such as email and social media. ; Freshdesk Messaging, which provides agents with a modern conversational user interface to engage with customers through web, mobile and social messaging apps; Freshdesk Contact Center which helps agent with cloud-based phone system to connect with customers; Freshdesk Omnichannel Suite, an integrated suite for engaging and tracking customers across digital and traditional channels; and Freshdesk Customer Success which helps customer success managers at B2B subscription companies.

See also

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Sprout Social, Inc. (NASDAQ:SPT) Receives Consensus “Buy” Recommendation From Analysts https://zurc2.com/sprout-social-inc-nasdaqspt-receives-consensus-buy-recommendation-from-analysts/ Fri, 22 Apr 2022 16:46:46 +0000 https://zurc2.com/sprout-social-inc-nasdaqspt-receives-consensus-buy-recommendation-from-analysts/ Sprout Social, Inc. (NASDAQ:SPT – Get Rating) has been assigned an average recommendation of “Buy” by the thirteen ratings companies that cover the stock, Marketbeat reports. Two research analysts rated the stock with a hold recommendation and nine gave the company a buy recommendation. The 1-year average price target among brokerages that have issued ratings […]]]>

Sprout Social, Inc. (NASDAQ:SPT – Get Rating) has been assigned an average recommendation of “Buy” by the thirteen ratings companies that cover the stock, Marketbeat reports. Two research analysts rated the stock with a hold recommendation and nine gave the company a buy recommendation. The 1-year average price target among brokerages that have issued ratings on the stock in the past year is $106.91.

Several equity research analysts have weighed in on SPT shares. Needham & Company LLC cut its price target on Sprout Social from $160.00 to $75.00 and set a “buy” rating on the stock in a Wednesday, Feb. 23 research report. Barclays raised its price target on shares of Sprout Social from $73.00 to $91.00 in a research note on Tuesday. Cantor Fitzgerald kicked off the Sprout Social stock coverage in a research note on Tuesday, April 5. They issued an “overweight” rating and a price target of $99.00 on the stock. Piper Sandler lowered its price target on shares of Sprout Social from $125.00 to $98.00 and set an “overweight” rating on the stock in a Wednesday, Feb. 23 research note. Finally, Stifel Nicolaus lowered his price target on Sprout Social shares from $155.00 to $100.00 and set a “buy” rating on the stock in a Wednesday, February 23 research note.

Separately, CTO Aaron Edward Frederick Rankin sold 32,000 shares of the company in a trade that took place on Friday, February 18. The shares were sold at an average price of $54.49, for a total value of $1,743,680.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available via this link. Additionally, Chief Financial Officer Preto Joseph Del sold 439 shares of the company in a trade that took place on Monday, April 4. The stock was sold at an average price of $83.07, for a total transaction of $36,467.73. Following the completion of the sale, the CFO now directly owns 135,489 shares of the company, valued at $11,255,071.23. The disclosure of this sale can be found here. In the past ninety days, insiders have sold 159,709 shares of the company valued at $10,962,463. Insiders hold 14.86% of the shares of the company.

Several large investors have recently changed their holdings in SPT. Moors & Cabot Inc. acquired a new stake in Sprout Social during the third quarter valued at approximately $27,000. SRS Capital Advisors Inc. acquired a new stake in Sprout Social during the fourth quarter valued at approximately $27,000. Manchester Capital Management LLC acquired a new stake in Sprout Social during the third quarter worth approximately $31,000. Pinebridge Investments LP acquired a new stake in Sprout Social during the fourth quarter valued at approximately $36,000. Finally, Atticus Wealth Management LLC acquired a new stake in Sprout Social during the third quarter valued at approximately $37,000. 83.57% of the shares are held by institutional investors.

NASDAQ:SPT was down $1.18 in Friday’s midday session, hitting $62.82. The stock had a trading volume of 5,561 shares, compared to an average trading volume of 668,567. The stock has a 50-day moving average of $69.71 and a 200-day moving average of $88.74. The company has a market capitalization of $3.41 billion, a price-earnings ratio of -118.53 and a beta of 1.29. Sprout Social has a one-year minimum of $48.79 and a one-year maximum of $145.42.

Sprout Social Inc (NASDAQ:SPT – Get Rating) last released its quarterly earnings data on Tuesday, February 22. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of ($0.17) by ($0.01). The company posted revenue of $53.27 million in the quarter, compared to $51.28 million expected by analysts. During the same period of the previous year, the company posted an EPS of ($0.11). The company’s revenue increased 42.6% year over year. As a group, research analysts predict Sprout Social to post -0.69 EPS for the current year.

Sprout Social Enterprise Profile (Get a rating)

Sprout Social, Inc designs, develops and operates a web-based social media management platform in the Americas, Europe, Middle East, Africa and Asia-Pacific. It provides cloud-based software that brings together social messaging, data, and workflows into a unified system of record, intelligence, and action.

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Winners, Inc. affiliate VegasWinners is approved by Google to run campaigns in a number of regulated sports betting markets as an affiliate marketing aggregator https://zurc2.com/winners-inc-affiliate-vegaswinners-is-approved-by-google-to-run-campaigns-in-a-number-of-regulated-sports-betting-markets-as-an-affiliate-marketing-aggregator/ Wed, 20 Apr 2022 12:40:00 +0000 https://zurc2.com/winners-inc-affiliate-vegaswinners-is-approved-by-google-to-run-campaigns-in-a-number-of-regulated-sports-betting-markets-as-an-affiliate-marketing-aggregator/ LAS VEGAS, NV / ACCESSWIRE / April 20, 2022 / Winners, Inc. (OTC PINK:WNRS) Subsidiary VegasWinners, which provides sports betting enthusiasts with high-quality content, analysis, research, data and advice, has announced that its subsidiary VegasWinners has been approved by Google to run campaigns in a number of markets. sportsbook regulated as an affiliate marketing aggregator. […]]]>

LAS VEGAS, NV / ACCESSWIRE / April 20, 2022 / Winners, Inc. (OTC PINK:WNRS) Subsidiary VegasWinners, which provides sports betting enthusiasts with high-quality content, analysis, research, data and advice, has announced that its subsidiary VegasWinners has been approved by Google to run campaigns in a number of markets. sportsbook regulated as an affiliate marketing aggregator. This will provide significant growth opportunities for the business while bringing expert betting picks and legal sports betting reviews directly to users. Strategically, Google Ads provides VegasWinners with the platform to reach their core audience and the permission to run sports betting ads marks a big step towards a substantial increase in revenue.

Winners, Inc., Tuesday, April 19, 2022, Image from press release

Winners, Inc. subsidiary VegasWinners newly appointed CMO Andy Scott said, “We are delighted to have been approved to serve ads in the Google auction. The user actively uses the search engine to find a specific service. For those looking for expert sports betting selections, we are now able to provide exactly what they are looking for. VegasWinners plans to launch its first Google Ads campaign in the Colorado market this month before adjusting budgets in the United States in time for the launch of the NFL season.

VegasWinners is a licensed sports betting affiliate that intends to drive traffic to gaming operators for a commission. VegasWinners is currently licensed in several states and has filed in other states. It is VegasWinners’ intention to be licensed in all states that allow online sports betting. To date, online sports betting has been legalized in Nevada, New Jersey, West Virginia, Pennsylvania, Rhode Island, Iowa, Oregon, Indiana, New Hampshire, Michigan , Colorado and Washington DC.

Gambling and gambling are two of the most popular forms of entertainment in the world. In 2017, the global gaming industry was valued at $533 billion – a figure that has since continued to rise with future forecasts, bringing projected growth to $1 trillion by 2022. Online gaming continues to experience steady growth, driven by the emergence of new technologies and increased internet accessibility, online casinos are emerging as the fastest growing iGaming segment.

ABOUT GOOGLE ADS

Google Ads is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offers, product listings or videos to internet users. It can place ads both in search engine results such as Google search and on non-search websites, mobile apps and videos.

ABOUT WINNERS, INC.

Winners, Inc. (OTC “WNRS”), through its operating subsidiary VegasWinners, is dedicated to sports betting research, data, advice, analysis and predictions using all available media, advertising formats and its user database. Revenues are expected to accelerate due to the explosion in sports handicap resulting from the 2018 Supreme Court ruling that states have the right to approve sports gambling and the rapid approval of state sports betting by resulting state. VegasWinners is a registered sports betting affiliate that intends to drive traffic to gaming operators for a commission. VegasWinners is currently registered in West Virginia, Indiana, Colorado, New Jersey and Tennessee and may operate in New York, Nevada, Mississippi, Wyoming, Illinois and Iowa and has filed an application in several other states. For more information, please visit the website, Twitter, Facebook and Instagram.

SAFETY STATEMENT

This press release contains forward-looking statements which can be identified by words such as “believes”, “expects”, “potential”, “plans”, “suggests”, “may”, “should”, “could”. “, “intends to”, or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from future results. understood by these statements. These factors include, but are not limited to, our ability to continue to improve our products and systems to address industry changes, our ability to expand our customer base and retain existing customers , our ability to compete effectively in our market segment, lack of public information about our company, our ability to raise sufficient capital to fund our business, operations, inability to continue our operations and a limited public market for our common stock, among other risks. Many factors are difficult to accurately predict and are generally beyond the company’s control. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update forward-looking statements to reflect circumstances or events that occur after the date on which the forward-looking statements are made.

FOR MEDIA INQUIRIES, PLEASE CONTACT:

Tom Terwilliger
CEO
Winners, Inc.
954-908-3366
hq@winnersinc.us

THE SOURCE: Winners, Inc.

See the source version on accesswire.com:
https://www.accesswire.com/698022/Winners-Inc-Subsidiary-VegasWinners-Approved-by-Google-to-Run-Campaigns-in-a-Number-of-Regulated-Sports-Betting-Markets-as- an affiliate marketing aggregator

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SOS Hydration, Inc. plans $8 million IPO for April 22 (SOSH) https://zurc2.com/sos-hydration-inc-plans-8-million-ipo-for-april-22-sosh/ Mon, 18 Apr 2022 05:29:56 +0000 https://zurc2.com/sos-hydration-inc-plans-8-million-ipo-for-april-22-sosh/ SOS Hydration, Inc. (SOSH) plans to raise $8 million in an initial public offering (IPO) on Friday, April 22, IPO Scoop reports. The company will issue 1,400,000 shares at a price of $4.50 to $6.50 per share. SOS Hydration, Inc. has a market cap of $38.7 million. Maxim Group served as an underwriter for the […]]]>

SOS Hydration, Inc. (SOSH) plans to raise $8 million in an initial public offering (IPO) on Friday, April 22, IPO Scoop reports. The company will issue 1,400,000 shares at a price of $4.50 to $6.50 per share.

SOS Hydration, Inc. has a market cap of $38.7 million.

Maxim Group served as an underwriter for the IPO.

SOS Hydration, Inc. provided the following company description for its IPO: “(Note: This IPO is a unit offering. IPOScoop has NO calls on unit IPOs. Excerpt of the prospectus: “We have applied to list our common stock and warrants on the Nasdaq Capital Market (“NASDAQ”) under the symbols “SOSH” and “SOSHW”.”) SOS Hydration, Inc. was founded by a veteran, a doctor and a former professional athlete, who were motivated by their desire for a hydrating product that could be absorbed quickly and had less sugar than the products that were available to them. electrolytes in the hydration drink category which provides products with less sugar than traditional sports drinks such as Gatorade.Our products include SOS Hydration liquids and powders, as well as our children’s brand. nts PAW Patrol. (Incorporated in Nevada) SOS specializes in providing electrolyte-enriched products to consumers and organizations worldwide. The founders used the basic formula developed by the World Health Organization (the “WHO”), called Oral Rehydration Solution, but reduced sugar, added balanced electrolytes for active lifestyles (e.g. , chloride is the second most lost electrolyte in perspiration) then added minerals zinc and magnesium. The product, with its low sugar content but high electrolyte concentration, activates the sodium-glucose cotransport system, which is the body’s mechanism for transporting water and electrolytes into its cells. SOS started in retail with a six-store test at Kroger. Consumers can purchase our products through e-commerce channels, including company websites, and at approximately 12,000 physical retail stores, including Walmart, CVS, Kroger (and its subsidiaries), Whole Foods and other outlets. **Note: For the year ended December 31, 2021, our revenue was $3.72 million and our net loss was $7.09 million. “.

SOS Hydration, Inc. was founded in 2013 and has 17 employees. The company is located at 4822 Sterling Drive Boulder, CO 80301 and can be reached by phone at (303) 834-9170 or on the web at http://www.soshydration.com/.



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MARIJUANA CO OF AMERICA, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-K) https://zurc2.com/marijuana-co-of-america-inc-management-report-and-analysis-of-financial-position-and-operating-results-form-10-k/ Fri, 15 Apr 2022 18:49:04 +0000 https://zurc2.com/marijuana-co-of-america-inc-management-report-and-analysis-of-financial-position-and-operating-results-form-10-k/ The statements contained in this report that are not statements of historical fact, including without limitation, statements containing the words "believes," "expects," "anticipates" and similar words, constitute forward-looking statements that are subject to a number of risks and uncertainties. From time to time we may make other forward-looking statements. Investors are cautioned that such forward-looking […]]]>
The statements contained in this report that are not statements of historical
fact, including without limitation, statements containing the words "believes,"
"expects," "anticipates" and similar words, constitute forward-looking
statements that are subject to a number of risks and uncertainties. From time to
time we may make other forward-looking statements. Investors are cautioned that
such forward-looking statements are subject to an inherent risk that actual
results may materially differ as a result of many factors, including the risks
discussed from time to time in this report, including the risks described under
"Risk Factors" in any filings we have made with the SEC.



Our discussion and analysis of our financial condition and results of operations
are based upon our financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States. The
preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, revenues and
expenses. On an on-going basis, we evaluate these estimates, including those
related to useful lives of real estate assets, cost reimbursement income, bad
debts, impairment, net lease intangibles, contingencies and litigation. We base
our estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. There can be no assurance that
actual results will not differ from those estimates.



Background


History and development of the company




We were incorporated in the State of Utah on October 4, 1985, under the name of
Mormon Mint, Inc., and our business focused on the manufacture and marketing of
commemorative medallions related to the Church of Jesus Christ of Latter-Day
Saints. On January 5, 1999, the Company changed its name to Converge Global,
Inc., and subsequently focused on the development and implementation of Internet
web content and e-commerce applications. In the period from 2009 to 2014, we
operated primarily in the mining exploration business, and in 2015, we left the
mining business and began an internet-based marketing business focused on online
marketing of service items to the hospitality and food service industry, selling
retail product directly to consumers from food distributors via credit card
and
commercial accounts.


On September 4, 2015, Donald Steinberg and Charles Larsen acquired control of
the Company through the purchase of 400,000,000 shares of restricted common
stock and 10,000,000 shares of Preferred Class A stock for $105,000.00, in equal
amounts. On September 9, 2015, Donald Steinberg was appointed Chairman of the
Board, Chief Executive Officer and Secretary of the Company. Mr. Larsen was
appointed to the Board of Directors. The new management changed the Company's
business plans and operations to focus on emerging opportunities in the cannabis
and hemp industries. On December 1, 2015, the Company changed its name to
Marijuana Company of America, Inc. and its stock trading symbol to MCOA. On
December 6, 2019, a change of control occurred, where Donald Steinberg and
Charles Larsen transferred their control shares to directors Robert Coale,
Edward Manolos and Jesus Quintero. Also on December 6, 2019, Jesus Quintero, who
was appointed as Chief Financial Officer in 2018, was appointed as our Chief
Executive Officer. Mr. Quintero is currently our Chief Executive Officer and
Chief Financial Officer, and a member of the Board of Directors.



We are a publicly listed company quoted on OTC Markets OTC Pink Market Tier
under the symbol "MCOA". We are a Smaller Reporting Company based in Los
Angeles, California. Our business includes the research and development of (1)
varieties of various species of hemp; (2) beneficial uses of hemp and hemp
derivatives; (3) indoor and outdoor cultivation methods for hemp; (4) technology
used for cultivation and harvesting of different species of hemp, including but
not limited to lighting, venting, irrigation, hydroponics, nutrients and soil;
(5) different industrial hemp derived cannabinoids ("CBD") and the possible
health benefits thereof; and, (6) new and improved methods of hemp cannabinoid
extraction omitting or eliminating the delta-9 tetrahydrocannabinol "THC"
molecule.



Marijuana Company of America is a Utah company listed on OTC Markets Pink Tier under the symbol “MCOA”. We are based at Los Angeles, California.



33








We are an owner and operator of licensed cannabis cultivation, processing and
dispensary facilities and a developer, producer and distributor of innovative
branded cannabis and cannabidiol ("CBD") products in the United States. We are
committed to creating a national distributorship and retail brand portfolio of
branded cannabis and CBD products, although as of the date of this filing,
marijuana (defined as cannabis containing delta-9 tetrahydrocannabinol
concentration of more than 0.3 percent on a dry weight basis) currently remains
illegal under U.S. federal law.



Through our wholly-owned subsidiary cDistro, Inc., a Nevada corporation, our
wholly-owned CBD product distribution business, we distribute hemp and CBD
products throughout the United States. Through cDistro, we distribute high
quality hemp-derived cannabinoid products, as detailed on our cDistro website,
www.cdistro.com. cDistro offers CBD brands along with smoke and vape shop
related products to wholesalers, c-stores, specialty retailers, and consumers in
North America. Through cDistro, we work exclusively with select manufacturers to
deliver retail service and products at wholesale prices



Through our wholly owned subsidiary HSmart, Inc., a California corporation, we
develop and sell CBD products under the brand name hempSMART™. Our business also
includes making selected investments and entering into joint ventures with
start-up businesses in the legalized cannabis and hemp industries.



Readers are directed to review our detailed disclosures in Item 1, Business;
Principal Products and their Markets; Joint Ventures and Investments above. A
summary of our investment and joint venture activity follows:



Joint Ventures



Bougainville Ventures, Inc. Our joint venture with Bougainville Ventures, Inc.
is currently in litigation (See Legal Proceedings, Item 3). We recorded an
annual impairment in 2017 of $792,500, reflecting the Company's percentage of
ownership of the net book value of the investment. During 2018, the Company
recorded equity losses of $37,673 and $11,043 for the first and second quarters
respectively, and recorded an annual impairment of $285,986 for the year ended
December 31, 2018, at which time we determined the investment to be fully
impaired due to Bougainville's breach of contract and resulting litigation.



Global Hemp Group Scio Oregon Joint Venture. On May 8, 2018, we entered into a
joint venture with Global Hemp Group, Inc., develop a project to commercialize
the cultivation of industrial hemp on a 109 acre parcel of real property owned
by the Company and Global Hemp Group in Scio, Oregon, and operating under the
Oregon corporation Covered Bridges, Ltd. The joint venture agreement commits the
Company to a cash contribution of $600,000 payable on the following funding
schedule: $200,000 upon execution of the joint venture agreement; $238,780 by
July 31, 2018; $126,445 by October 31, 2018; and, $34,775 by January 31, 2019.
The Company has complied with its payments. The 2018 crop of hemp grown on the
joint venture's real property consisted of 33 acres of high yielding CBD hemp
grown in an orchard style cultivation on the property. The 2018 harvest
consisted of approximately 37,000 high yielding CBD hemp plants producing 24
tons of biomass that produced 48,000 pounds of dried biomass. However, there
were delays with Global Hemp Group's management and maintenance of the business
and the biomass that caused degradation to the harvested crop affecting
marketability. Additional issues and disputes arose between the Company and
Global Hemp Group. These disputes led to the parties entering into a settlement
agreement on September 28, 2020, whereby Global Hemp Group agreed to pay the
Company $200,000 and issue common stock to the Company equal in value to
$185,000 as of September 28, 2020, subject to a non-dilutive protection
provision. Additionally, Global Hemp Group agreed to pay the Company $10,000 to
cover the Company's legal fees relating to the Agreement. In exchange for the
settlement consideration, the Company agreed to relinquish its ownership
interest in the joint venture.

34





Natural Plant Extract of California & Subsidiaries Joint Venture; On April 15,
2019, the Company entered into a joint venture agreement with Natural Plant
Extracts of California, Inc. and subsidiaries ("NPE"). The purpose of the joint
venture was to utilize NPE's California and City cannabis licenses to jointly
operate a business named "Viva Buds" to operate a licensed cannabis distribution
service in California. In exchange for acquiring 20% of NPE's common stock, the
Company agree to pay two million dollars and issue NPE one million dollars'
worth of the Company's restricted common stock. As of February 3, 2020, the
Company was in arrears in its payment obligations under the joint venture
agreement, and the parties entered into a settlement and release of all claims
terminating the joint venture. The parties agreed to reduce the Company's
equity ownership in NPE from 20% to 5%. The Company also agreed to pay NPE
$85,000 and the balance of $56,085.15 paid in a convertible promissory note
issued with terms allowing NPE to convert the note into common stock at a 50%
discount to the closing price of MCOA's common stock as of the maturity date. As
of the date of this filing, the Company satisfied its payment obligations under
the settlement agreement. Our continuing 5% equity ownership in NPE involves
related parties, since Edward Manolos, our director, is also a director and
beneficial owner of 18.8% of the common stock in NPE.

Joint Ventures in Brazil and Uruguay; On October 1, 2020, we entered into two
Joint Venture Agreements with Marco Guerrero, a director of the Company, dated
September 30, 2020, to form joint venture operations in Brazil and in Uruguay to
produce, manufacture, market and sell the Company's hempSMART™ products in Latin
America, and will also work to develop and sell hempSMART™ products globally.
The Joint Venture Agreements contain equal terms for the formation of joint
venture entities in Uruguay and Brazil. The Brazilian joint venture will be
headquartered in São Paulo, Brazil, and will be named HempSmart Produtos
Naturais Ltda. ("HempSmart Brazil"). The Uruguayan joint venture will be
headquartered in Montevideo, Uruguay and will be named Hempsmart Uruguay S.A.S.
("HempSmart Uruguay"). Both are in the development stage.

Investments




Share Exchange with Cannabis Global, Inc. On September 30, 2020, the Company
entered into a securities exchange agreement with Cannabis Global, Inc. (OTC:
CBGL), a Nevada corporation. By virtue of the agreement, the Company issued
650,000,000 shares of its unregistered common stock to Cannabis Global in
exchange for 7,222,222 shares of Cannabis Global unregistered common stock. The
Company and Cannabis Global also entered into a lock up leak out agreement,
which prevents either party from sales of the exchanged shares for a period of
12 months. Thereafter the parties may sell not more than the quantity of shares
equaling an aggregate maximum sale value of $20,000 per week, or $80,000 per
month until all Shares and Exchange Shares are sold. Our transaction with
Cannabis Global, Inc. is material and involves related parties, since Edward
Manolos, our director and holder of Preferred Class A stock, is also a director
of Cannabis Global, Inc.

Share Exchange with Eco Innovation Group, Inc.On February 26, 2021, we entered
into a Share Exchange Agreement with Eco Innovation Group, Inc., a Nevada
corporation quoted on OTC Markets Pink ("ECOX") to acquire the number of shares
of ECOX's common stock, equal in value to $650,000 based on the per-share price
of $0.06, in exchange for the number of shares of MCOA common stock equal in
value to $650,000 based on the closing price for the trading day immediately
preceding the effective date (the "Share Exchange Agreement").  For both
parties, the Share Exchange Agreement contains a "true-up" provision requiring
the issuance of additional common stock in the event that a decline in the
market value of either parties' common stock should cause the aggregate value of
the stock acquired pursuant to the Share Exchange Agreement to fall below
$650,000. Complementary to the Share Exchange Agreement, the Company and ECOX
entered into a Lock-Up Agreement dated February 26, 2021 (the "Lock-Up
Agreement"), providing that the shares of common stock acquired pursuant to the
Share Exchange Agreement shall be subject to a lock-up period preventing its
sale for a period of 12 months following issuance and limiting the subsequent
sale to aggregate maximum sale value of $20,000 per week, or $80,000 per month.
On October 1, 2021, we entered into a First Amendment to Lock-Up Agreement
between the Company and Eco Innovation Group, Inc., dated and effective October
1, 2021 (the "Amended Lock-Up Agreement"), which amends that certain Lock-Up
Agreement entered into between the Company and Eco Innovation Group, Inc. on
February 26, 2021 (the "Original Lock-Up Agreement"). The Amended Lock-Up
Agreement amends the Original Lock-Up Agreement in one respect, by amending the
initial lock-up period from 12 months following its effective date to 6 months
following its effective date. All other terms and conditions of the Original
Lock-Up Agreement remain unaffected.



35






Asset Purchase Agreement with VBF Brands, Inc. On October 6, 2021, the Company,
through its wholly owned subsidiary Salinas Diversified Ventures, Inc., a
California corporation, entered into an Asset Purchase Agreement, Management
Services Agreement, Cooperation Agreement and Employment Agreement with VBF
Brands, Inc., a California corporation ("VBF"), a wholly owned subsidiary of
Sunset Island Group, Inc., a Colorado corporation ("SIGO"). VBF and SIGO agreed
to transfer to the Company all of VBF's outstanding stock to the Company, and
appointed our CEO and CFO Jesus Quintero as President of VBF.



VBF owns various fixed assets including machinery and equipment, a lease for a
10,000 square foot facility located at 20420 Spence Road, Salinas, California,
93908, leasehold improvements, good-will, inventory, tradenames including "VBF
Brands," trade secrets, intellectual property, and other tangible and intangible
properties, including licenses issued by the City of Salinas, County of
Monterey, and the State of California to operate a licensed cannabis nursery,
cultivation facility, and operations for the manufacturing and distribution of
cannabis and cannabis products.



VBF and SIGO agreed to sell and transfer to the Company all of VBF's outstanding
stock, and, by virtue of the Management Services Agreement, appoint Mr. Jesus
Quintero as President of VBF, vesting management and control of VBF's licensed
cannabis operations in the Company. Concurrently, VBF and Livacich entered into
a Cooperation Agreement, whereby VBF and Livacich agreed to cooperate to
facilitate the transfer of ownership of VBF, which includes licenses issued by
the City of Salinas, County of Monterey, and the State of California, to operate
a cannabis nursery, cultivation facility and manufacturing and distribution
operations to the Company. The Company also agreed to retain Livacich as Chief
Executive Officer for a term of two years and agreed to compensate her with a
salary including a signing cash bonus of $250,000, and a $250,000 performance
cash bonus payable after six months after the Effective Date. The bonus is
conditioned upon Livacich meeting an agreed to "Net Revenue" target of one
million dollars ($1,000,000) from VBF's operations during the six-month period
after closing of the Asset Purchase Agreement, and her compliance with the terms
and conditions of this Asset Purchase Agreement, the Management Services
Agreement and the Cooperation Agreement.



As consideration for the transaction, the Company agreed to assume two secured
convertible promissory notes issued by SIGO to St. George Investments, LLC, a
Utah limited liability company ("St. George") (the "SIGO Notes"). The first note
was issued December 8, 2017, in the original face amount of $170,000.00, and the
second was issued February 13, 2018, in the original face amount of
$4,245,000.00. SIGO also issued warrants to St. George to purchase common shares
in SIGO, and fifty (50) shares of SIGO's preferred stock. St. George agreed to
cancel the warrants and preferred shares upon the Company's assumption of the
SIGO Notes.


Under the Asset Purchase Agreement, the closing is conditioned upon certain
conditions precedent, specifically (i) VBF and SIGO's full corporate
authorization, consent and execution of this Agreement; (ii) VBF's sale to MCOA
of 100% of the issued and outstanding shares of VBF; (iii) full corporate
authorization, consent compliance with and execution of the Management Services
Agreement and Cooperation Agreement; (iv) SIGO's disclosure of the Agreement on
Form 8-K with the Securities and Exchange Commission; (v) full cooperation in
MCOA's financial auditing of VBF in accordance with ASC 805, including providing
unrestricted access to all VBF corporate and financial records and providing all
necessary cooperation with VBF financial personnel; (vi) full cooperation in
aiding and assisting Buyer with its change of ownership applications with the
relevant licensing authorities; (vii) the warranty of truthful representations
and execution of and compliance with the terms and conditions of the Executive
Employment Agreement, Management Services Agreement and the Cooperation
Agreement.



As of the date of this filing, the conditions precedent to the closing of the
Asset Purchase Agreement remain in the process of implementation, so that the
Asset Purchase Agreement closing has not yet occurred pursuant to its terms.
Legal counsel for MCOA is currently in the process of working with VBF, Salinas
Diversified Ventures, and the relevant state and local governments to effect the
change of control and license transfers necessary to close the Asset Purchase
Agreement.



36






Results of Operations


Year ended December 31, 2021 compared to the year ended December 31, 2020

The following table presents our operating results for the year ended December 31, 2021 compared to December 31, 2020:




                   MARIJUANA COMPANY OF AMERICA, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020
                                         AUDITED

                                                          For the Year ended Dec 31,
                                                            2021               2020
REVENUES:
Sales                                                  $     1,030,249     $     267,584
Related party Sales                                                 -             13,069
Total Revenues                                               1,030,249           280,653

Cost of sales                                                  873,371           159,304

Gross Profit                                                   156,878           121,349

OPERATING EXPENSES:
Depreciation and amortization                                  101,334     
       5,933
Selling and marketing                                          456,983           420,511
Payroll and related                                            681,786           411,954
Stock-based compensation                                     1,207,945         3,014,888
General and administrative                                   2,419,963         1,122,954
 Total operating expenses                                    4,868,011         4,976,240

Net loss from operations                                    (4,711,133 )      (4,854,891 )

OTHER INCOME (EXPENSES):
Interest expense, net                                       (4,302,293 )      (2,999,291 )
Impairment gain (Loss) on Joint Ventures                             0           (22,658 )
Income (Loss) on equity investment                            (735,178 )   

106 305

Gain (loss) on change in fair value of derivative
liabilities                                                      3,852        (4,698,072 )
Unrealized Gain (loss) on trading securities                   504,137     

248 204

Realized Gain (loss) on trading securities                    (543,200 )          (2,603 )
(Loss) Gain on settlement of debt                             (407,635 )   
      77,624
Total other income (expense)                                (5,480,317 )      (7,290,491 )

Net loss before income taxes                               (10,191,450 )     (12,145,382 )

Income taxes (benefit)                                              -                 -

NET INCOME (LOSS)                                      $   (10,191,450 )   $ (12,145,382 )

Foreign currency Translation Adjustment                        (11,725 )
Comprehensive Income                                   $   (10,198,883 )  

($12,145,382)

Loss per common share, basic and diluted               $         (0.00 )  

$(0.01)


Weighted average number of common shares
outstanding, basic and diluted (after stock-split)       5,248,075,532     
 962,029,388








37








Revenues



Total revenues for the year end December 31, 2021 and December 31, 2020, were
$1,030,249 and $280,653, respectively, an increase of $749,596. This increase is
attributed to $93,633 of our hempSMART product lines and our new line of
businesses which were $901,535 for cDistro, a distributor of hemp and CBD
products, and equipment lease rental from our new joint venture of $35,081.

The following table identifies our new product offerings in 2021 and the revenue generated from sales of our products in 2021 and 2020 respectively:



                                               2021           2020
Body                                        $     1,400     $   3,901
Brain Capsules                                    3,635        29,135
Drink Mix                                           167         2,966
Drops                                            42,734       152,121
Face Moisturizers                                 2,648        13,951
Pain Capsules                                        -          8,308
Pain Cream                                       37,753        55,938
Pet Drops                                         5,296        14,332
Bottles - Nic                                    41,470            -
Bottles - Salt Nic                               20,804            -
CBD Hempettes                                     3,913            -
Disposables - Tobacco Free Nicotine (TFN)       261,719            -
Kratom                                          338,735            -
Other C-Distro Products                         148,805            -
Vape                                             86,089            -
MCOA Equipment Lease                             35,081            -

TOTAL                                       $ 1,030,249     $ 280,653




Related Party Sales
Related party sales contributed $0 and $13,069 to our revenue for 2021 and 2020,
respectively. Related party sales are comprised of sales of our hempSMART
products to our directors, officers, and sales team members. No related party
sales were for services. All sales were made at listed retail prices and were
for cash consideration.



Costs of Sales

Costs of sales primarily consist of inventory cost and overhead, manufacturing,
packaging, warehousing, shipping and direct labor costs directly attributable to
our hempSMART products. For the year ended December 31, 2021 and December 31,
2020, our total costs of sales were $873,371 and $159,304, respectively. The
increase is attributed to $62,434 for our hempSMART business and our new
business line that we acquired during 2021, which were $810,937 for cDistro, a
distributor of hemp and CBD products.



Gross profit


For the year ended December 31, 2021 and December 31, 2020, gross profit was
$156,878 and $121,349, respectively. This increase was attributed to $66,280
from our hempSMART products and the new business that we acquired during 2021,
which was $90,598 for cDistro, a distributor of hemp and CBD products. Gross
margins were 15.2% and 43.2% for the years ended December 31, 2021 and December
31, 2020, respectively. The Company has incurred net losses from operations of
$4,711,133 and $4,854,891 for the years ended December 31, 2021 and 2020,
respectively.





38






The following is a tabular breakdown of expenses related to Selling and
Marketing, Payroll and Related expenses, Stock-based Compensation and General
and Administrative Expenses:



Expense                           2021            2020
Stock Based Compensation       $ 1,207,945     $ 3,014,888
Legal Expense                      495,117         171,680
Admin Compensation                 424,537         163,091
Consulting Fees                    408,047         236,343
Investor Relation                  366,590         123,399
Travel and Related                 299,014          74,244
Marketing / Media                  280,749         136,703
Officer's Compensation             269,350         223,356
Marketing Compensation             157,050         154,430
Independent Contractor             137,885          47,800
Insurance Expense                  111,327          56,762
Board of Director Fees              95,000          91,010
Accounting                          92,743         111,810
Rent Expense                        66,582          51,526
Advertising Promotion               60,296           4,012
Audit Fee                           59,500          74,475
Office Supplies                     26,308           6,741
Intangible amortization             40,000              -
Bad Debt Expense                    34,359              -
Website Development Cost            32,320          56,260
SEC Filing Fees                     28,057          16,668
Security                            12,560              -
Bank Service Charges                10,928           2,120
Web Sales Commission                 6,765          30,632
UK Contract Compensation             4,274          26,704
Fees / Licensing                     3,617           1,252
All other expenses, net*           137,091         100,334
Total Payroll & G&A Expenses   $ 4,868,011     $ 4,976,240



*This represents other individually insignificant general and administrative expenses in the normal course of business that did not constitute compensation for third-party vendors.




Stock-based Compensation decreased by $1,806,943 primarily due to less
stock-based compensation issued to officers and employees during the year ended
December 31, 2021. Stock compensation was $1,207,945 for the year ended December
31, 2021 as compared to $3,014,888 for the year ended December 31, 2020. Stock
based compensation during the year ended December 31, 2021 included $251,008
related to additional shares issued to the former owners of cDistro as part of
the merger and share exchange agreement amendment entered into on November 24,
2021, and an additional $234,633 related to additional shares owed under that
agreement as of December 31, 2021. Administrative compensation increased to
$424,537 in 2021 from $163,091 in 2020, the $261,446 increase was due to new
hires during 2021 resulting from the expansion of our business. Overall, selling
and marketing increased by $36,472, attributed mainly to marketing and media
costs that increased by the amount of $36,472 in 2021, from $420,511 in 2020 to
a total of $456,983 in 2021, due to an increase in social media advertising
costs that resulted in an increase in sales for the year ended December 31,
2021. Legal expenses increased to $495,117 for the year ended December 31, 2021,
from $171,680 in 2020, due primarily to increased compliance and regulatory
filing activity associated with our public offerings and corporate governance.
Investor relation costs increased by $243,191 during 2021 due to increase in
investor and shareholder outreach events and hiring of additional investment
firms to increase interactions with the investment community. This also resulted
in an increase in travel and related expenses by $144,046 for 2021 over 2020.
Director and officer insurance increased to $111,327 during the year ended
December 31, 2021 from $56,762 for the year ended December 31, 2020 due to an
increase in rates from insurance carriers affiliated with the cannabis industry.



Overall, our total operating expenses in 2021 decreased by 2.2% compared to 2020, from
$4,976,240 for $4,868,011for the year ended 2021, respectively.





39







Stock-based compensation of officers and directors, 2021 and 2020.



 Officer and Director       2021           2020
Edward Manolos           $  20,526     $    15,600
Marco Guerrero           $  25,526     $        -
Themistocles Psomiadis   $      -      $    19,010
Jesus Quintero           $ 501,264     $ 2,502,140
Tad Milander             $      -      $    49,350




The 2021 stock compensation bonuses were issued by the Board of Directors
pursuant to our Equity Incentive Plan and executive contracts with our directors
and officers. Pursuant to our Equity Incentive Plan, the Company has discretion
to make stock awards to its affiliates for past services, in lieu of bonuses or
other cash compensation, for directors' compensation or for any other valid
purpose. At December 31, 2021, we reviewed the performance of our staff and
affiliates, and in making the 2021 awards, determined the awards justified
because our staff and affiliates accomplished the following:



Our Equity Plan issuances to affiliates as of December 31, 2021 increased by
$508,644. This was due to the Company's performance during 2021 and additional
shares issued as there were issues with liquidity to pay cash compensation at
times. The balance was in stock-based compensation in 2021 as it was for 2020.
This was primarily for shares issued for consulting services as follows:



The balance of our stock-based compensation in 2021, compared to 2020, related to the following consulting services:



                       2021 Stock-Based       2020 Stock-Based
                                                                                       Nature of Consultant
     Consultant          Compensation           Compensation          Variance          Services Provided
Paula Vetter                      10,900                 19,065           16,467      Consulting Services -
                                                                                         Medical Advisory
                                                                                     Specialist for hempSMART
                                                                                       during 2021 and 2020
Gloria Lynch                          -                  70,350          

(70,350 ) Bonus as part of equity

Incentive plan during

                                                                                               2020
Lauren Regier                     37,766                 41,975           (4,209 )    Consulting Services -
                                                                                      Web and graphic design
                                                                                       during 2021 and 2020
Danny Rodriguez                   15,395                     -            15,395     Accounting Services 2021
Eddie Bonet                       18,474                     -            18,474     Accounting Services 2021
Mario Greco MD                    25,011                     -            25,011      Medical Advisory 2021
Herlin Soto                       18,474                     -            

18,474 Marketing searches in 2021


Alan T. Hawkins                  100,000                     -           

100,000 legal advisory services

                                                                                               2021
John Grosso                       34,800                     -            34,800        Investor Relation
                                                                                          services 2021
Cory Battan                       34,800                     -            34,800        Investor Relation
                                                                                          services 2021
Ian Harvey                         8,726                     -            

8,726 Consulting and Marketing

                                                                                          Services 2021
Tad Mailander                         -                  43,950          

(43,950) Consulting services –

Legal services during

                                                                                               2020
Otto Creative Studio              31,140                 31,140            
  -      Consulting Services - IT
                                                                                     services during 2021 and
                                                                                               2020







40





The objective results resulting from the consulting services are summarized as follows:

• The Company reduced its expense ratio by becoming more efficient, reducing

count headcount and make efficient and effective cash flow decisions.



   •  The Company paid off most variable priced convertible notes prior to
      conversion over the last quarter with funds raised from its Form S-1
      registration statement.



• The Company successfully negotiated a full settlement of its largest senior

fixed-price convertible note holders, preserving shareholder value and

      minimizing the impact of the dilutive nature of the notes.



• Leadership team helped pivot from old Affiliate Marketing

(MLM) for hempSMART to new direct-to-consumer e-commerce

marketing model. This required significant changes in culture, business

      plan and branding of the products.



• The company has successfully drawn on its Form S-1 record equity line

with White Lion and was able to secure a second primary Form S-1 offer

      registration statement effective to obtain funds for operations and
      expansion.



• The company has managed to not only survive during the COVID pandemic, but

actually grew and thrived through key management decisions along the way and

the personal sacrifice of our CEO Jesus Quinterowho paid for the business

spending for several months on his personal business card to help float the

      Company during periods where funds were depleted.




   •  The executive management team has overseen significant efforts to expand
      into South America and move key parts of its supply chain to Uruguay to
      reduce the cost of goods sold and increase gross margins and overall
      profitability.




   •  The Company has successfully negotiated acquisitions and deals that

resulted in a substantial increase in the market capitalization of the Company

      during the year to enhance shareholder value.



• The company successfully withdrew more than three billion shares that were on

booking with transfer agent in 2021 due to success

convertible debt settlement, resulting in less dilution and more equity

      available for financing and acquisitions.




We anticipate continuing to reduce our dependence on stock-based compensation in
the future. However, given our present cash position, and because of possible
increased operational costs including overhead, product manufacturing and
development, and related costs, we may, to the extent necessary, utilize
stock-based compensation in the future to compensate key product development,
operations and sales and marketing personnel.

Operating losses


For the year ended December 31, 2021, operating losses were $4,711,133 or 457%
of total revenues, as compared to $4,854,891 or 1,730% of total revenues for the
year ended December 31, 2020. This increase of $143,758 was due to continued
restructuring and expansion of the Company's operations. We believe the reduced
operating losses incurred in 2021, as compared to 2020, reflect the
effectiveness of the Company's management team in 2021. We expect to continue to
reduce our losses as we continue to implement our plan for new sales strategies
and cost-cutting measures in the near future until profitability is achieved,
which is not certain. Our operations are subject to numerous risks associated
with establishing any new business, including unforeseen expenses, delays and
complications. There can be no assurance that we will achieve or sustain
profitable operations. This increase is attributed to the company's expansion
into Latin America and operations attributed to our acquisitions in 2021, one of
which is not yet integrated financially.

41






Other Income (Expense)

Other income (expense) for the years ended December 31, 2021 and December 31,
2020 included other expenses of $5,480,317 and $7,290,491, respectively. The
decrease of $1,810,174 was primarily due to an increase of $1,303,002 in
interest expense. This was offset by an increase of $4,701,924 in gain on
changes in fair value of derivative liabilities from a loss of $4,698,072 for
the year ended December 31, 2020 to a gain of $3,852 for year ended December 31,
2021 and a decrease of $841,484 in losses on equity investment from a gain of
$106,305 for the year ended December 31, 2020 as compared to a loss of $735,178
for the year ended December 31, 2021. Also, we reflect a decrease in realized
loss on trading securities of $540,597 from a loss of $2,603 for the period
ended December 31, 2020 compared to a loss of $543,200 for the year ended
December 31, 2021.

Income tax expense (benefit)

We have had no income tax expense or benefit for the years ended December 31, 2021 and December 31, 2020respectively.

Net profit (net loss)

Due to the above factors, net losses for the year ended
December 31, 2021 and December 31, 2020 have been $10,191,450 and $12,145,382, respectively. For December 31, 2021 and December 31, 2020these net losses represented 989.2% and 4,328% of total revenues for the respective periods.

Segment information


Accounting Standards Codification subtopic Segment Reporting 280-10 ("ASC
280-10") establishes standards for reporting information regarding operating
segments in annual financial statements and requires selected information for
those segments to be presented in interim financial reports issued to
stockholders. ASC 280-10 also establishes standards for related disclosures
about products and services and geographic areas. Operating segments are
identified as components of an enterprise about which separate discrete
financial information is available for evaluation by the chief operating
decision maker, or decision-making group, in making decisions how to allocate
resources and assess performance. The following table represents the Company's
hempSMART business.



                            hempSMART
                     STATEMENT OF OPERATIONS
         FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

                                     For the Years ended
                               Dec 31, 2021       Dec 31, 2020

Revenues                       $      93,575     $      280,653

Cost of Goods Sold                    61,267            159,304

Gross Profit                          32,308            121,349

Expense
Depreciation Expense                  10,103              5,933
Stock-based Compensation             104,685            207,955
Selling and Marketing                443,569            393,799
Payroll and Related expenses         252,123            165,491
General and Admin Expenses           456,322            217,288
Total Expense                      1,266,802            990,466

Net Loss from Operations       $  (1,234,494 )   $     (869,117 )



The following table represents the Company’s cDistro business segment for the years ended December 31, 2021 and 2020 since its acquisition:



                                               For the Years ended
                                          Dec 31, 2021      Dec 31, 2020


Revenues                                $      901,535     $       -

Cost of Goods Sold                             810,937             -

Gross Profit                                    90,598             -

Expense
Depreciation and amortization expense           91,358             -
Stock-based Compensation                            -              -
Selling and Marketing                            4,549             -
Payroll and Related expenses                   110,000             -
General and Admin Expenses                     163,355             -
Total Expense                                  369,262             -

Net Loss from Operations                $     (278,664 )   $       -




42





Cash and capital resources


As of December 31, 2021, and December 31, 2020, our operating activities
produced cash used in operations of $3,984,108 and $1,723,950,  respectively.
Our primary internal sources of liquidity were provided by an increase in
proceeds from the issuance of note payables of $3,295,863 for the year ended
December 31, 2021 as compared to $1,017,664 for the year ended December 31,
2020, and a decrease in proceeds from the sale of note payables to a related
party of $20,000 in 2021 as compared to $75,000 in repayments to a related party
for the year ended December 31, 2020. We saw an increase in proceeds from sales
of our common stock to $2,201,601 at December 31, 2021, as compared to $478,685
at December 31, 2020. During the period ended December 31, 2021, we relied upon
external financing arrangements to fund our operations. During the year ended
December 31, 2020, we entered into several separate financing arrangements with
St. George Investments, LLC, a Utah limited liability company, in which we
borrowed an aggregate of $2,541,470, the principal of which is convertible into
shares of our common stock (see Note 4, Convertible Notes Payable). Our ability
to rely upon external financing arrangements to fund operations is not certain,
and this may limit our ability to secure future funding from external sources
without changes in terms requested by counterparties, changes in the valuation
of collateral, and associated risk, each of which is reasonably likely to result
in our liquidity decreasing in a material way. We intend to utilize cash on
hand, loans and other forms of financing such as the sale of additional equity
and debt securities and other credit facilities to conduct our ongoing business,
and to also conduct strategic business development and implementation of our
business plans generally.

Operating Activities

For the year ended December 31, 2021 and 2020, the Company used cash for
operating activities of $3,984,108 and $1,723,950, respectively. Operating
activities consist of corporate overhead, product development of our hempSMART™
products, and development of our distribution business. Increases are due
primarily to increases in executive compensation, professional fees, and product
development costs.

Investing Activities
For the years ended December 31, 2021 and December 31, 2020, net cash used in
and provided by investing activities was $216,810 and $118,984, respectively.
For the year ended December 31, 2021, the Company used $126,305 and $6,016 for
the purchase of equipment, while receiving $125,000 in proceeds from the
disposition of an investment during the year ended December 31, 2020, compared
to the receipt of $190,401 for the sales of investments during the year ended
December 31, 2021.

Financing Activities
For the years ended December 31, 2021 and 2020, financing activities were a
source of cash of $4,242,164 and $1,467,704, respectively. For the years ended
December 31, 2021 and 2020, this was primarily from proceeds of $3,295,863 and
$1,017,664 derived from the issuance of notes payable, and repayment to related
parties of $20,000 and $75,000 for the year ended December 31, 2021 and 2020,
respectively. The Company received income from the sale of common stock of
$2,201,601 and $478,685 for the years ended December 31, 2021 and 2020,
respectively. For the year ended December 31, 2020, the Company received
proceeds of $35,500 from a Payroll Payment Protection loan from the Small
Business Administration and also received proceeds of $10,855 from the sale of
trading securities.

We currently do not have sufficient cash and liquidity to meet our anticipated
working capital for the next twelve months. Historically, we have financed our
operations primarily through private sales of our common stock. If our sales
goals for our hempSMART™ products and our distribution business, cDistro, do not
materialize as planned, and we are not able to achieve profitable operations at
some point in the future, we may have insufficient working capital to maintain
our operations as we presently intend to conduct them or to fund our expansion,
marketing, and product development plans. There can be no assurance that we will
be able to obtain such financing on acceptable terms, or at all.

Off-balance sheet arrangements




As of December 31, 2021 and December 31, 2020, we did not have any off-balance
sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or
capital resources.



43





CRITICAL ACCOUNTING POLICIES AND ESTIMATES




Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, which have been prepared
in accordance with U.S. GAAP. The preparation of these consolidated financial
statements requires us to make estimates and judgments that affect amounts
reported in those statements. We have made our best estimates of certain amounts
contained in our consolidated financial statements. We base our estimates on
historical experience and on various other assumptions that we believe are
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying value of assets and liabilities. However,
application of our accounting policies involves the exercise of judgment and use
of assumptions as to future uncertainties, and, as a result, actual results
could differ materially from these estimates. Management believes that the
estimates, assumptions, and judgments involved in the accounting policies
described below have the most significant impact on our consolidated financial
statements.



We cannot predict what future laws and regulations might be passed that could
have a material effect on our results of operations. We assess the impact of
significant changes in laws and regulations on a regular basis and update the
assumptions and estimates used to prepare our financial statements when we
deem
it necessary.



Cash and Cash Equivalents

We consider all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are held in operating accounts at a major financial institution.

Inventory


Inventory is primarily comprised of products and equipment to be sold to
end-customers. Inventory is valued at cost, based on the specific identification
method, unless and until the market value for the inventory is lower than cost,
in which case an allowance is established to reduce the valuation to market
value. As of December 31, 2021, and December 31, 2020, market values of all of
our inventory were greater than cost, and accordingly, no such valuation
allowance was recognized. The value of inventory on December 31, 2021 and
December 31, 2020 was $252,199 and $103,483, respectively.



Deposits

Deposits is comprised of advance payments made to third parties, primarily for
inventory for which we have not yet taken title. When we take title to inventory
for which deposits are made, the related amount is classified as inventory, then
recognized as a cost of revenues upon sale (see "Costs of Revenues" below).

Prepaid expenses and other current assets

Prepaid expenses and other current assets is primarily comprised of advance
payments made to third parties for independent contractors' services or other
general expenses. Prepaid services and general expenses are amortized over the
applicable periods which approximate the life of the contract or service period.
The balance of prepaid insurance at December 31, 2021 and December 31, 2020 was
$61,705 and $55,783. The balance of prepaid insurance at December 31, 2021 and
December 31, 2020 was $61,705 and $55,783.



Accounts Receivable


Accounts receivable are recorded at the net value of face amount less any
allowance for doubtful accounts. On a periodic basis, we evaluate our accounts
receivable and, based on a method of specific identification of any accounts
receivable for which we deem the net realizable value to be less than the gross
amounts of accounts receivable recorded, we establish an allowance for doubtful
accounts for those balances. In determining our need for an allowance for
doubtful accounts, we consider historical experience, analysis of past due
amounts, client creditworthiness and any other relevant available information.
However, our actual experience may vary from our estimates. If the financial
condition of our clients were to deteriorate, resulting in their inability or
unwillingness to pay our fees, we may need to record additional allowances or
write-offs in future periods. This risk is mitigated to the extent that we
collect retainers from our clients prior to performing significant services.



The allowance for doubtful accounts, if any, is recorded as a reduction in
revenue to the extent the provision relates to fee adjustments and other
discretionary pricing adjustments. To the extent the provision relates to a
client's inability to make required payments on accounts receivables, the
provision is recorded in operating expenses. As of December 31, 2021, and 2020,
allowance for doubtful accounts was $3,267 and $0, respectively. For December
31, 2021 and December 31, 2020, we recorded bad debt expense of $34,359 and
$9,249, respectively. Net accounts receivable for year end December 31, 2021 and
December 31, 2020 were $121,588 and $6,542, respectively. Net accounts
receivable for year end December 31, 2021 and December 31, 2020 were $121,588
and $6,542, respectively.



44






Property and Equipment, net
Property and Equipment is stated at net book value, cost less depreciation.
Maintenance and repairs are expensed as incurred. Depreciation of owned
equipment is provided using the straight-line method over the estimated useful
lives of the assets, ranging from two to seven years. Depreciation of
capitalized construction in progress costs, a component of property and
equipment, net, begins once the underlying asset is placed into service and is
recognized over the estimated useful life. Property and equipment is reviewed
for impairment as discussed below under "Accounting for the Impairment of
Long-Lived Assets." We did not capitalize any interest as of December 31, 2021
and as of December 31, 2020.



Accounting for impairment of long-lived assets

We evaluate long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Upon such an occurrence, recoverability of assets to be held and
used is measured by comparing the carrying amount of an asset to forecasted
undiscounted net cash flows expected to be generated by the asset. If the
carrying amount of the asset exceeds its estimated future cash flows, an
impairment charge is recognized by the amount by which the carrying amount of
the asset exceeds the fair value of the asset. For long-lived assets held for
sale, assets are written down to fair value, less cost to sell. Fair value is
determined based on discounted cash flows, appraised values or management's
estimates, depending upon the nature of the assets. We have recorded $0 and
$22,658 in impairment charges related to our JV investments during the years
ended December 31, 2021 and 2020, respectively.



Beneficial conversion feature


If the conversion features of conventional convertible debt provide for a rate
of conversion that is below market value at issuance, this feature is
characterized as a beneficial conversion feature ("BCF").  We record a BCF as a
debt discount pursuant to Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ACF") Topic 470-20 Debt with Conversion and
Other Options. In those circumstances, the convertible debt is recorded net of
the discount related to the BCF, and we amortize the discount to interest
expense over the life of the debt using the effective interest method.



Revenue recognition


For annual reporting periods after December 15, 2017, the Financial Accounting
Standards Board ("FASB") made effective ASU 2014-09 "Revenue from Contracts with
Customers," to supersede previous revenue recognition guidance under current
U.S. GAAP. Revenue is now recognized in accordance with FASB ASC Topic 606,
Revenue Recognition. The objective of the guidance is to establish the
principles that an entity shall apply to report useful information to users of
financial statements about the nature, amount, timing, and uncertainty of
revenue and cash flows arising from a contract with a customer. The core
principle is to recognize revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the
Company expects to be entitled in exchange for those goods or services. Two
options were made available for implementation of the standard: the full
retrospective approach or modified retrospective approach. The guidance became
effective for annual reporting periods beginning after December 15, 2017,
including interim periods within that reporting period, with early adoption
permitted. We adopted FASB ASC Topic 606 for our reporting period as of the year
ended December 31, 2017, which made our implementation of FASB ASC Topic 606
effective in the first quarter of 2018. We decided to implement the modified
retrospective transition method to implement FASB ASC Topic 606, with no
restatement of the comparative periods presented. Using this transition method,
we applied the new standards to all new contracts initiated on/after the
effective date. We also decided to apply this method to any incomplete contracts
we determine are subject to FASB ASC Topic 606 prospectively. For the years
ended December 31, 2021 and 2020, there were no incomplete contracts. As is more
fully discussed below, we are of the opinion that none of our contracts for
services or products contain significant financing components that require
revenue adjustment under FASB ASC Topic 606.



45







Identification of our contracts with our customers.


Contracts included in our application of FASB ASC Topic 606, consist completely
of sales contracts between us and our customers that create enforceable rights
and obligations. For the years ended December 31, 2020, and 2019, our sales
contracts included the following parties: us, our sales associates and our
customers. Our sales contracts were offered by us and our sales associates to
our customers directly through our web site. Our sales contracts, and those
formalized by our sales associates, are represented by an electronic order form,
which contains the contractual elements of offer for sale, acceptance and the
provision of consideration consisting of the buyer's payment, which is
concurrent with our delivery of hempSMART™ product. Since our hempSMART™ product
sales contracts are consummated upon receipt of the customer's acceptance of our
offer; our concurrent receipt of our customers payment; and, our delivery of the
agreed to hempSMART™ product, all parties are equally committed to fulfilling
their respective obligations under the sales contracts. Further, the sales
contracts specifically identify (1) parties; (2) quantity of hempSMART™ product
ordered; (3) price; and, (4) subject, and so each respective party's rights are
identifiable and the payment terms are defined. Since the sales contracts are
consummated concurrent with offer, acceptance, payment and delivery of the
hempSMART™ product ordered, we recognize revenue and cash flows as the principal
from the respective sales contract transactions as they complete. Further,
because our sales contracts are offered, accepted and consummated concurrently,
our ability to collect revenue is immediate. We receive no payments for
agreements that do not qualify as a contract. If customers agree to multiple
sales contracts when they are entered into at or near the same time, our policy
is to combine those contracts if: (1) the sales contracts are negotiated as a
single package; (2) the payment amount of one sales contract is dependent upon
another sales contract; (3) our performance obligations of delivering multiple
hempSMART™ products can be determined to be part of a single transaction. Since
the nature of the entry into and consummation of our sales contracts occur
concurrently, there are no changes or modifications to the terms of the sales
contracts that would modify the enforceable rights and performance obligations
of the parties and that would materially alter the timing of our receipt of
revenue from our sales contracts.

Identify performance obligations in our sales contracts.


In analyzing our sales contracts, our policy is to identify the distinct
performance obligations in a sales contract arrangement. In determining our
performance obligations under our sales contracts, we consider that the terms
and conditions of sales are explicitly outlined in our sales contracts and are
so distinct and identifiable within the context of each sales contract, and so
are not integrated with other goods, or constitute a modification or
customization of other goods in our contracts, or are highly dependent or highly
integrated with other goods in our sales contracts. Thus, our performance
obligations are singularly related to our promise to provide the hempSMART™
products upon receipt of payment. We offer an assurance warranty on our
hempSMART™ products that allows a customer to return any hempSMART™ products
within thirty days if not satisfied for any reason. Assurance warranties are not
identifiable performance obligations, since they are electable at the whim of
the customer for any reason. However, we do account for returns of purchase
prices if made.

Determination of the price in our sales contracts.

The transaction prices in our sales contract is the amount of consideration we
expect to be entitled to for transferring promised hempSMART™ products. The
consideration amount is fixed and not variable. The transaction price is
allocated to the identified performance obligations in the contract. These
allocated amounts are recognized as revenue when or as the performance
obligations are fulfilled, which is concurrently upon receipt of payment. There
are no future options for a contract when considering and determining the
transaction price. We exclude amounts third parties will eventually collect,
such as sales tax, when determining the transaction price. Since the timing
between receiving consideration and transferring goods or services is immediate,
our sales contract do not have a significant financing component, i.e.,
recognizing revenue at the amount that reflects the cash payment that the
customer would have made at the time the goods or services were transferred to
them (cash selling price), rather than significantly before or after the goods
or services are provided.



46





Allocation of the Transaction Price of Our Sales Contracts.


Our sales contracts are not considered multi-element arrangements which require
the fulfillment of multiple performance obligations. Rather, our sales contracts
include one performance obligation in each contract. As such, from the outset,
we allocate the total consideration to each performance obligation based on the
fixed and determinable standalone selling price, which we believe is an accurate
representation of what the price is in each transaction.

Revenue recognition when the performance obligation is satisfied.


A performance obligation is satisfied when or as control of the good or service
is transferred to the customer. The standard defines control as "the ability to
direct the use of, and obtain substantially all of the remaining benefits from,
the asset." (ASC 606-10-20). For performance obligations that are fulfilled at a
point in time, revenue is recognized at the fulfillment of the performance
obligation. As noted above, our single performance obligation sales contracts
are singularly related to our promise to provide the hempSMART™ products to the
customer upon receipt of payment, which occurs concurrently and when, upon
completion, allows us under our revenue recognition policy to realize revenue.

Regarding our offered financial accounting, bookkeeping and/or real property
management consulting services, to date no contracts have been entered into, and
thus no reportable revenues have resulted for the fiscal years ended 2021 and
2020.

Product Sales
Revenue from product sales, including delivery fees, FOB shipping point, is
recognized when (1) an order is placed by the customer; (2) the price is fixed
and determinable when the order is placed; (3) the customer is required to and
concurrently pays for the product upon order; and, (4) the product is shipped.
The evaluation of our recognition of revenue after the adoption of FASB ASC 606
did not include any judgments or changes to judgments that affected our
reporting of revenues, since our product sales, both pre and post adoption of
FASB ASC 606, were evaluated using the same standards as noted above, reflecting
revenue recognition upon order, payment and shipment, which all occurs
concurrently when the order is placed and paid for by the customer, and the
product is shipped. Further, given the facts that (1) our customers exercise
discretion in determining the timing of when they place their product order;
and, (2) the price negotiated in our product sales is fixed and determinable at
the time the customer places the order, and there is no delay in shipment, we
are of the opinion that our product sales do not indicate or involve any
significant customer financing that would materially change the amount of
revenue recognized under the sales transaction, or would otherwise contain a
significant financing component for us or the customer under FASB ASC Topic 606.

Revenue costs


Our policy is to recognize costs of revenue in the same manner in conjunction
with revenue recognition. Cost of revenues include the costs directly
attributable to revenue recognition and includes compensation and fees for
services, travel and other expenses for services and costs of products and
equipment. Selling, general and administrative expenses are charged to expense
as incurred.


Advertising and promotion costs

Advertising and promotion costs are included as a component of sales and marketing costs and are expensed as incurred. Over the years ended December 31, 2021 and December 31, 2020these costs were $236,563 and $129,504respectively.




Shipping and Handling Costs

For product and equipment sales, shipping and handling charges are included in the cost of the products.

Stock-based compensation


Restricted shares are awarded to employees and entitle the grantee to receive
shares of restricted common stock at the end of the established vesting period.
The fair value of the grant is based on the stock price on the date of grant. We
recognize related compensation costs on a straight-line basis over the requisite
vesting period of the award, which to date has been one year from the grant
date. During the years ended December 31, 2021 and December 31, 2020,
stock-based compensation expense for restricted shares was $1,207,945 and
$3,014,888, respectively. Compensation expense for warrants and options is based
on the fair value of the instruments on the grant date, which is determined
using the Black-Scholes valuation model and are expensed over the expected
term
of the awards.



Income Taxes

We recognize deferred tax assets and liabilities for the expected future tax
consequences of events that have been included in the financial statements or
tax returns in accordance with applicable accounting guidance for accounting for
income taxes, using currently enacted tax rates in effect for the year in which
the differences are expected to reverse. We record a valuation allowance when
necessary to reduce deferred tax assets to the amount expected to be realized.
For the year ended December 31, 2021 and December 31, 2020, due to cumulative
losses, we recorded a valuation allowance against our deferred tax asset that
reduced our income tax benefit for the period to zero. As of December 31, 2021,
and December 31, 2020, we had no liabilities related to federal or state income
taxes and the carrying value of our deferred tax asset was zero.



47






Loss Contingencies

From time to time the Company is subject to various legal proceedings and claims
that arise in the ordinary course of business. On at least a quarterly basis,
consistent with ASC 450-20-50-1C, if the Company determines that there is a
reasonable possibility that a material loss may have been incurred, or is
reasonably estimable, regardless of whether the Company accrued for such a loss
(or any portion of that loss), the Company will confer with its legal counsel,
consistent with ASC 450. If the material loss is determinable or reasonably
estimable, the Company will record it in its accounts and as a liability on the
balance sheet. If the Company determines that such an estimate cannot be made,
the Company's policy is to disclose a demonstration of its attempt to estimate
the loss or range of losses before concluding that an estimate cannot be made,
and to disclose it in the notes to the financial statements under Contingent
Liabilities.


Net earnings (loss) per common share


We report net income (loss) per common share in accordance with FASB ASC 260,
"Earnings per Share." This statement requires dual presentation of basic and
diluted earnings with a reconciliation of the numerator and denominator of the
earnings per share computations. Basic net income (loss) per share is computed
by dividing net income attributable to common stockholders by the weighted
average number of shares of common stock outstanding during the period and
excludes the effects of any potentially dilutive securities. Diluted net income
(loss) per share gives effect to any dilutive potential common stock outstanding
during the period. The computation does not assume conversion, exercise or
contingent exercise of securities that would have an anti-dilutive effect on
earnings.



Related Party Transactions

We follow the FASB ASC 850-10 subtopic, “Related Party Transactions,” for the identification of related parties and the disclosure of related party transactions.




Pursuant to ASC 850-10-20, related parties include: a) affiliates of the
Company; b) entities for which investments in their equity securities would be
required, absent the election of the fair value option under the Fair Value
Option Subsection of Section 825-10-15, to be accounted for by the equity method
by the investing entity; c) trusts for the benefit of employees, such as pension
and profit-sharing trusts that are managed by or under the trusteeship of
management; d) principal owners of the Company; e) management of the Company; f)
other parties with which the Company may deal if one party controls or can
significantly influence the management or operating policies of the other to an
extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests; and g) other parties that can significantly
influence the management or operating policies of the transacting parties or
that have an ownership interest in one of the transacting parties and can
significantly influence the other to an extent that one or more of the
transacting parties might be prevented from fully pursuing its own separate
interests.



Material related party transactions are required to be disclosed in the
consolidated financial statements, other than compensation arrangements, expense
allowances, and other similar items in the ordinary course of business. However,
disclosure of transactions that are eliminated in the preparation of
consolidated or combined financial statements is not required in those
statements. The disclosures shall include: a) the nature of the relationship(s)
involved; b) a description of the transactions, including transactions to which
no amounts or nominal amounts were ascribed, for each of the periods for which
statements of operation are presented, and such other information deemed
necessary to an understanding of the effects of the transactions on the
financial statements; c) the dollar amounts of transactions for each of the
periods for which statements of operations are presented and the effects of any
change in the method of establishing the terms from that used in the preceding
period; and d) amounts due from or to related parties as of the date of each
balance sheet presented and, if not otherwise apparent, the terms and manner of
settlement.

© Edgar Online, source Previews

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Zacks: Analysts expect Sprout Social, Inc. (NASDAQ: SPT) to report EPS of -$0.04 https://zurc2.com/zacks-analysts-expect-sprout-social-inc-nasdaq-spt-to-report-eps-of-0-04/ Wed, 13 Apr 2022 06:22:05 +0000 https://zurc2.com/zacks-analysts-expect-sprout-social-inc-nasdaq-spt-to-report-eps-of-0-04/ Wall Street analysts expect Sprout Social, Inc. (NASDAQ:SPT – Get Rating) to report earnings per share of ($0.04) for the current fiscal quarter, according to Zacks Investment Research. Five analysts have released earnings estimates for Sprout Social, with the highest EPS estimate of $0.04 and the lowest estimate of $0.05. Sprout Social reported earnings of […]]]>

Wall Street analysts expect Sprout Social, Inc. (NASDAQ:SPT – Get Rating) to report earnings per share of ($0.04) for the current fiscal quarter, according to Zacks Investment Research. Five analysts have released earnings estimates for Sprout Social, with the highest EPS estimate of $0.04 and the lowest estimate of $0.05. Sprout Social reported earnings of ($0.05) per share in the same quarter last year, indicating a positive 20% year-over-year growth rate. The company is expected to announce its next results after the market closes on Monday, January 1.

On average, analysts expect Sprout Social to report annual earnings of ($0.13) per share for the current year, with EPS estimates ranging from ($0.14) to ($0. $13). For the next fiscal year, analysts expect the company to report earnings of ($0.02) per share, with EPS estimates ranging from ($0.07) to $0.11. Zacks’ EPS calculations are an average based on a survey of sell-side research companies that track Sprout Social.

Sprout Social (NASDAQ:SPT – Get Rating) last reported quarterly earnings data on Tuesday, February 22. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of ($0.17) by ($0.01). The company posted revenue of $53.27 million for the quarter, versus analyst estimates of $51.28 million. During the same period of the previous year, the company posted an EPS of ($0.11). Sprout Social’s quarterly revenue increased 42.6% year over year.

SPT has been the subject of several research analyst reports. Canaccord Genuity Group lowered its price target on Sprout Social shares from $155.00 to $75.00 and set a “buy” rating for the company in a Wednesday, February 23 report. Stifel Nicolaus lowered his price target on Sprout Social shares from $155.00 to $100.00 and set a “buy” rating for the company in a Wednesday, February 23 report. Cantor Fitzgerald kicked off Sprout Social stock coverage in a report on Tuesday, April 5. They set an “overweight” rating and a price target of $99.00 for the company. Piper Sandler lowered its price target on Sprout Social shares from $125.00 to $98.00 and set an “overweight” rating for the company in a Wednesday, Feb. 23 report. Finally, Robert W. Baird lowered his price target on Sprout Social shares from $165.00 to $110.00 in a Wednesday, February 23 report. Two equity research analysts gave the stock a hold rating and eleven gave the stock a buy rating. According to data from MarketBeat, Sprout Social has an average rating of “Buy” and an average target price of $104.42.

In other news from Sprout Social, Chairman Ryan Paul Barretto sold 5,600 shares of the company in a trade on Monday, April 4. The shares were sold at an average price of $83.39, for a total transaction of $466,984.00. The sale was disclosed in a legal filing with the SEC, which is available on the SEC’s website. Additionally, CTO Aaron Edward Frederick Rankin sold 32,000 shares in a trade dated Thursday, January 20. The stock was sold at an average price of $64.12, for a total transaction of $2,051,840.00. The disclosure of this sale can be found here. Insiders sold 159,851 shares of the company worth $10,814,178 in the past ninety days. Insiders hold 14.86% of the shares of the company.

Several hedge funds have recently increased or reduced their stakes in the company. Norges Bank bought a new position in shares of Sprout Social during Q4 for a value of approximately $13,435,000. Ascent Group LLC purchased a new stock position in Sprout Social during Q4 for a value of approximately $230,000. Compass Financial Advisors LLC purchased a new position in shares of Sprout Social during Q4 for a value of approximately $1,067,000. BlackRock Inc. increased its holdings of Sprout Social shares by 1.2% in the fourth quarter. BlackRock Inc. now owns 3,738,364 shares of the company worth $339,033,000 after acquiring 45,923 additional shares in the last quarter. Finally, EFG Asset Management North America Corp. acquired a new equity stake in Sprout Social in Q4 for a value of approximately $1,712,000. 83.57% of the shares are currently held by institutional investors.

Shares of SPT opened at $74.15 on Wednesday. Sprout Social has a one-year minimum of $48.79 and a one-year maximum of $145.42. The company has a market capitalization of $4.02 billion, a P/E ratio of -139.91 and a beta of 1.29. The company has a 50-day simple moving average of $69.63 and a two-hundred-day simple moving average of $90.99.

Sprout Social Enterprise Profile (Get an evaluation)

Sprout Social, Inc designs, develops and operates a web-based social media management platform in the Americas, Europe, Middle East, Africa and Asia-Pacific. It provides cloud-based software that brings together social messaging, data, and workflows into a unified system of record, intelligence, and action.

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